With the value of property soaring in recent years and the cost of living reaching crippling rates, the topic of equity release has found its way back into the mainstream press.
The premise is tantalising – gain access to a large sum of money to help with everyday living costs and future plans. More traditional equity release schemes usually depend on two inhibiting factors: the owner staying in their property and typically being over the age of 55. This excludes many people, including those who need to move home but can’t wait until completion to benefit from their equity.
That’s why Open Property Group has developed a form of equity release designed especially for property sellers who need quick, upfront access to cash. We serve a huge gap in the market in two ways:
Our cash upfront offer is applicable to property owners who have sufficient equity once all secured charges have been paid. In our case, a secured charge is typically the outstanding mortgage balance(s).
To ensure there is sufficient equity in the property to validate our cash advance, sellers will need to provide us with a redemption statement in advance of exchange. Obtained from your lender, this statement proves how much is left to pay on the mortgage, including interest and associated fees.
To ensure you receive your cash advance as quickly as possible, we will either fast track exchange to make the sale legally binding, or we will lodge a restriction on your property’s title. The latter ensures any proceeds from the sale are used to pay off the outstanding mortgage debt first and that the vendor fulfils their obligation to sell to Open Property Group.
Unlike lifestyle mortgage equity release schemes, secured loans or bridging loans – where the homeowner will usually owe more than they borrowed thanks to high rates of interest - Open Property Group doesn’t charge any interest on our cash advance.
We simply advance a portion of the sales price, paid as an upfront sum. It’s not a loan that needs repaying and our cash advances are immediate, made possible thanks to our secure financial reserves.
If you need to access some of your property’s equity as soon as possible and can’t wait for a sale to compete, talk to Open Property Group today.