In order to apply for an equity release it is strongly advised that you give some thought to what plan you are going to choose. There is a lot of variety available to choose from and you should consider all the pros and cons of different plans before arriving at a conclusion. Plans differ in many small details and it is always best to find out beforehand what suits your needs the most.
One of the most important factors that determine whether you can take out an equity release on your house depends. If you have paid all the amount owed to the bank only then would you be allowed to apply for the full equity release. If some percentage of the initial mortgage still remains, then the amount you can receive goes down significantly.
Whether you’ve sold your home or you’re going to be selling your first, there are things you need to know when listing your home for sale. There are many sellers who think the home selling process is very easy and does not take any preparation. This is not true, in most cases.
Any friend, family member, colleague, realtor, or individual who says a home is a fun filled experience is not being honest. The truth is that selling a home can be an inconvenience, create stress and anxiety, and lead to the thoughts of uncertainty. These feelings can however be minimized if the proper preparation is taken and well crafted decisions are made along the way.
Can you sell your house after taking out an equity release?
Now that we are done with a brief introduction about equity releases, we can move on to the debate at hand. What will happen if you try to sell your house after taking out the equity? It mostly depends on the plan that you chose for yourself. There are certain plans that do give you the permission to sell the house if you have taken the equity money.
While there are also others that do not allow you to do so. But what happens if you do end up selling your house? The first thing that you would be bound to do is to pay off the equity release amount that you had taken. After that, you need to pay any outstanding dues that you might have in the bank regarding mortgages. Only after all these issues have been resolved, can you move on to enjoying what is left.
An interesting observation here is that there are some people who prefer to take the equity release funds and then pay off the remaining mortgages on their houses. This way, when they eventually do sell their house, they only need to pay back the equity money and can take the rest for themselves.
Always be vigilant
The importance of vigilantly going through the rules and regulations of the plan cannot be stressed enough. There are some plans that might not allow you to sell your house before a certain stated period of time, and in case you do sell your house, you would have to deal with penalties. Therefore, it is a must that you read and understand every line of the contract before signing. These plans usually only allow you to sell the house in the event of death, or permanent relocation to a health care facility.
Ordinarily, when you do take out an equity release on your house, you probably don’t have any plans of selling your house. But we all know that life can take many unexpected turns so it is always better to stay safe and prepared rather than being sorry later on.
Hiring a great Realtor rs extremely important
Often the most overlooked step when selling a home is the importance of hiring a great real estate agent. Are not all real estate agents the same? The answer is absolutely not. When selling a home, you should have high expectations of the real estate agent who you hire to sell your home. Top producing agents possess different qualities and have different skill sets, bottom line.
Put a fair price: do not notice what you paid for the house or the money you need to buy another or to live for rent. Experts recommend putting a fair price, ie a market price.
To do this, it is necessary to look carefully at the price of the m2 of the area where the house is located, in the m2 of the house, in the number of bedrooms it has, in its appraisal value and in the price at which the Houses around. Today’s buyers have more information than ever.
Announces housing on the Internet: there is a saying that the one that is not on the Internet does not exist. More and more citizens use the Internet to search for homes. Also, a real estate agency will assure you more visits and increase the chances of sale.
The real estate agents have precise information on the real estate market of the area where the house is to be sold. In addition, these experts will upload the property to the real estate portals and will detail the characteristics of the house. It is highly recommended to upload professional photos. Another option is to do a virtual tour of the house.
Avoid last-minute surprises: the landlord must be aware of the payment of taxes and the community of landlords. If not, they will be problems that make it difficult to close the operation.
Fix the house to be cozy: it is essential to keep the house clean and free of obstacles. Also, remove those elements that reflect the personality of the owner: photos of the family, religious decoration or personal objects. You also have to make repairs of faucets that leak or give a coat of paint to the rooms. The home staging technique can be very useful for the seller.
Many homeowners are preparing to sell their home in the heat of the arrival of investment funds, the slight improvement of housing and the interest of banks to re-mortgage.
But before putting the property on sale it is advisable to clean it, fix what is neglected or analyze well the price at which it will go to the market, in order for the sale to be carried out successfully. It must be taken into account that the high stock of housing makes it difficult to close operations.