by Hans Sept

If you think that equity release will augment the decrease in income when you retire, you have to think about various factors behind it. First of all you should take note of the property value and its capacity to release a big amount when needed or whether it has a drawdown facility. If you consult an expert, he will tell you his stories of how the surveyor underestimated the property after submitting the application and paying the fees which would shatter all the plans.

Equity release application means nothing but an additional work to the advisers. Those who apply would worry if the funds would be enough to make the case proceed in which he might result in paying money for valuing a property that might not be of use to him. So, if you are filling up an application for mortgage of life time or any other equity release, always get the advice of the professional equity release adviser. Though they may not visit you personally, they might perform a thorough analysis online to find out the value of the property so that you need not believe entirely what the surveyor says.

Not only that you may get the advice from the experts, but also you can see for yourself online the current value of the property. Some sites like Ourproperty, Rightmove and Mouseprice are open to all and so you could see the sale prices of the property by entering your postcode. They get their information from Land Registry’s data and they are more reliable to assess the value of your property. Usually we would have noticed that the price quoted for sales is much more than the price sold.

If you get proper advice from proper person, then you reduce the risk of wasting valuation fee and getting disappointed. A surveyor may not take into account all the factors determining the price of a property like its style, streets nearby, property sizes and so he cannot provide 100% accurate results. Some people approach the local estate agent to value their property. This cannot be said as bad, but when you note it, very often they give the price for which the property will be sold and not the real value of the property itself.

So, when you approach them do ask for both the selling price and the actual value. But the person who is appointed by equity release provider does not pay heed to the asking price but rather compares it with the other properties of the area before assuming the value. He usually takes into account the value of the properties sold within few months in that area for determining your property’s value.

When you do a little research yourself, you will surely find the value of your property to be more than what was appraised by the adviser. When you think that your adviser did not play fair in the issue, you may raise certain questions about the values of properties used as comparisons, and ask them if your property is the same in size and style of those properties. You may also ask them whether they took into account the location of your property as well as its condition. You may enquire them how and on what basis did they calculated the price. Answering these questions will help the adviser to arrive at a correct valuation, but if you are too conservative, they might give you a higher valuation rather than its correct value.

Want to find out more about home equity release, then visit Hans Sept’s site on how to choose the best home equity loan calculator for your needs.

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