Enhanced Equity Release Plans in 2022

Defining an Enhanced Equity Release Plan: Your Poor Health Could Work in Your Favour
Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui
Many People Are Getting Older, and Their Retirement Accounts Are Not Going to Last Forever. If You Want Your Money to Last as Long as Possible, Then You Should Consider an Impaired Life or Enhanced Equity Release Plan.

Before You Start Reading…

How Much Can You Release? 👇

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Safe & Fast

Featured In
yahoofinance marketwatch

Are you considering releasing equity from your home? You might qualify for an impaired life or enhanced equity release plan.

This will allow you to release even more money from your property.

You’ll need to work with your financial adviser to look at various factors to see which plan is right for you.

This article will explain what an impaired life or enhanced equity release plan is, how it works, and who should use one!

Let’s find out now!

Audio Thumbnail
Sound Bar
TABLE OF CONTENTS

What’s an Enhanced Equity Release Plan?

An enhanced equity release plan is a type of annuity1 that allows people to generate income from the equity in your home, and it can also help you pay for long-term care expenses.

It’s equity release, but a series of plans that are available for individuals who may, unfortunately, have a lower life expectancy, due to medical conditions.

What are the Advantages of an Enhanced Equity Release Plan?

The advantages of an enhanced equity release plan are:

  • You can release up to 30% more than on regular plans.
  • Interest rates will likely be lower than other equity release plans.
  • You release tax-free income.
  • You can use it to buy an LTCi2 cover if you’re over 55 years old and your house is worth more than £23,250.

What are the Drawbacks of an Enhanced Equity Release Plan?

The drawbacks of an enhanced equity release plan are:

  • It’s not always easy to know how long you’ll need the funds and to budget accordingly.
  • You’ll have less money left over in your estate to pass onto other beneficiaries
  • You can’t use it if your house is worth less than £70,000

How Does an Enhanced Equity Release Plan Work?

An enhanced equity release plan works in the same way as an ordinary equity release plan, but you will need to fill out additional forms to indicate the state of your health.

You will also need to declare any official diagnoses.

Who Should Use an Enhanced Equity Release Plan?

You should consider an enhanced equity release plan if:

  • You are over 55 and own your home.
  • You have medical conditions, like dementia, and you don’t have the financial means to pay your medical expenses.
  • If you have a limited life expectancy and want to experience your final days financially free.
  • If you have a chronic illness and need care, but you don’t want to go to a facility.

We recommend that you speak to an independent financial adviser to find out if you qualify for an enhanced equity release plan.

Before You Continue Reading….

Let’s See How Much You Can Release 👇

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Safe & Fast

Featured In
yahoofinance marketwatch

How Long Does an Enhanced Equity Release Plan Last?

Like all forms of equity release, the plan will end when you pass away or move into a permanent care facility.

What Can I Use the Money For?

The money from an impaired life or enhanced equity release plan can be used in any way you wish.

You might want to consider long-term care!

Long-term care is defined as any assistance with walking, eating, dressing, and bathing that someone might need daily due to serious illness or disability.

These expenses usually only come up after retirement age (around 65 years old), but this will depend on your circumstances!

An impaired life or enhanced equity release plan is a great way for people to prepare themselves for the future and plan.

You can set up an impaired life or enhanced equity release plan with a mortgage company to help you pay for long-term care expenses.

The person who has dementia will need their GP’s3 permission, and they should contact the LTCi provider before signing any documents.

The lender will then let you know how much equity is available to be released from your home.

They’ll also consider how much you need for care costs and what your home is worth when they assess whether or not it’s a viable option.

Common Questions

How Much Does Impaired Life or Enhance Equity Release Cost?

How Much Am I Giving Up With an Impaired Life or Enhanced Equity Release Plan?

How to Know If Impaired Life or Enhanced Equity Release Plan Is For Me?

What Happens If I Die Before My Ltci Cover Has Expired?

In Conclusion

The impaired life or enhanced equity release plan is a new way to help people with disabilities and their families decide how they want to live.

It’s an alternative for those who can’t afford the cost of long-term in-home care, but still need some assistance in daily living activities.

The biggest advantage of this type of financing is that it allows you to only have the loan repaid when you pass away or move into permanent care.

If you have disabilities or impaired health, speak to a financial advisor to find out if you qualify for an enhanced equity release plan.

Before You Go…

Use the FREE Calculator Below 👇

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Safe & Fast

Featured In
yahoofinance marketwatch
Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations. Learn more about our editorial guidelines.

See How Much You Can Release 👇

Use the QUICK form below.

 

Equity Release Calculator

Value of Your Home?

50000

Drag me

🔒 100% Safe & Fast

As Featured In
yahoofinance marketwatch