How could down-valuation affect my equity release?

So, the lifetime mortgage lender doesn’t quite agree with the property valuation for your home. Don’t despair, all is definitely not lost, it’s not all doom and gloom just yet.

What it does mean however is that you definitely need a really good equity release adviser on your side. You need an equity release expert who will go the extra mile to uncover alternative solutions so that you can release the money you need to live the retirement you deserve.

Of course, with lending based on a percentage of your property’s value and the age of your youngest applicant, it would be wrong to say that down-valuation is of no threat to the equity release process.

So, what will your TRER Adviser do to avoid completion catastrophe
and help you to find the best plan?

Our advisers will start by researching your local property market. This means that they can realistically manage your expectations about the value of your home and provide you with a decent idea of what to expect. Unfortunately, despite the amount of research our advisers carry out we can never guarantee avoiding a discrepancy between predicted value and a lenders valuation.

So, should this happen, leaving you with a shortfall in funds or a significant rate increase, your adviser will get their thinking cap on once again. They will go back to the drawing board to look for alternative routes to equity release that will suit you.

Our highly experienced advisers are here to provide you with potential solutions to any such problems that might arise and as such are extremely proactive in their approach. And, with less than 5% of recent cases failing to complete as a result of down-valuation, it seems this approach is working. Of course there are certain situations involving the construction or location of a property that are out of out control, but wherever possible we will do our best to find different routes to successful equity release that work for you.

As independent equity release specialists, we have strong relationships with a wide variety of lenders, many of whom are reacting to the challenges posed by down-valuations and are enhancing their schemes to help overcome them.

So, whilst down-valuations can be challenging, with the right Adviser on your side it’s definitely not all doom and gloom. It might mean a bit more leg work and research on the part of your Adviser, but that is of course what they are there for.

If you have any questions about down-valuations or equity release in general, please get in touch with us on 0800 612 6755 we look forward to hearing from you.

Thanks for reading!

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Photo by KS KYUNG on Unsplash