Crown Equity Release: What to Know in 2024
Contributors:
Expert Verified- Crown’s equity release allows those over 55 (with flexible upper age limits) to unlock property value without selling or moving.
- Loan amounts are tailored to your age, health, and home value, so you can enjoy retirement income boosts without monthly repayments; however, be mindful of its impact on estate value and potential early repayment charges.
- Consider alternatives like downsizing or retirement-interest mortgages for diverse financial strategies.
If you are worried about having enough money to last you through your retirement, you could consider Crown’s equity release .
Many people face difficulty in retirement due to having a limited income combined with the extra costs of ageing.
Releasing equity from your home may be the solution.
Chances are you have probably researched a few equity release providers already, but you still require guidance on which could be the best equity release companies for you to choose from.
We are here to help.
Did you know Crown’s equity release can make home reversion offers on a broader range of properties and personal circumstances than most providers?
In This Article, You Will Discover:
We scoured the internet for information and customer reviews on Crown’s equity release to help you make a more informed decision.
Therefore:
NOTE: Every Investor is an impartial and unconnected third-party information provider via this website, and the details replicated in this commentary represent the opinions of Every Investor only and may not reflect the views or opinions of Crown. This article must not be interpreted as advice, nor is it a solicitation to conduct transactions in any financial product provided by Crown.
Who Is Crown in the Equity Release Market and What Services Do They Offer?
Crown is the front-runner in the equity release market, providing homeowners with a suite of financial solutions to unlock the value of their properties.
Who Is Crown in the Equity Release Market?
Crown is an independent capital provider that specialises in bespoke home reversion plans.
Authorised and regulated in the UK by the Financial Conduct Authority (FCA), Crown has been helping it’s clients enjoy a more relaxed retirement since 2001. 1
What Is Crown Equity Release?
For those over 55, equity release serves as a method to access the financial value of their home equity, without the need to sell the property.
It’s a way to financially leverage home value. What sets equity release apart is the timing of its repayment.
The loan, along with the interest, is paid back at the home’s subsequent sale, usually after significant life events of the homeowner.
Learn More: What’s Equity Release?
What Are the Eligibility Criteria for Accessing Crown Equity Release Products, and How Does the Process Work?
Eligibility for Crown’s equity release products requires meeting age and property criteria, followed by a comprehensive process that includes professional advice and valuation.
What Are the Eligibility Criteria for Accessing Crown Equity Release Products?
To access Crown Equity Release products, you must be at least 55 years old and own a property in the UK valued at a minimum threshold, often around £70,000 or higher.
The property should be your primary residence, ensuring it meets Crown’s standards for condition and location.
These criteria are designed to ensure that the equity release plan is suitable for your financial situation and property type.
What Is The Process for Obtaining Crown Equity Release?
Obtaining crown equity release is a straightforward process that involves a number of steps.
Firstly, you’ll need to get independent advice from a financial adviser who specializes in equity release to ensure it’s the right choice for you.
Once you’re confident in your decision, the next step is to evaluate your property’s value, as this will determine the amount that can be released.
After your property has been evaluated, you’ll be presented with a no obligation offer which signifies the beginning of the application process.
The application involves legal checks and the signing of contracts, which should be thoroughly reviewed.
The final step is the release of funds that are tax-free and can be used as you choose.
Remember, releasing equity from your home will reduce its value and may affect your entitlement to means-tested benefits.
Why Should You Consider Crown for Equity Release, and What Services Do They Offer?
Opting for Crown for equity release is advantageous due to their tailored services, which cater to diverse financial needs, ensuring clients receive personalised solutions.
Why Should You Consider Crown for Equity Release?
You should consider Crown because it provides an individual approach to equity release.
Crown has recently revealed that it has now passed the £100mln mark of home reversions from properties by Crown.2
It’s plans are funded by private investors, which allows Crown to offer much higher loan-to-value schemes with more flexibility on the types of property it will accept than most other providers.
What Services Does Crown Equity Release Offer?
The services Crown offers are equity release and home reversion plans.
Crown provides the means to sell any amount up to 100% of your home’s value and offers a lump sum and monthly payments in return.
What Are Crown’s Equity Release Schemes, Interest Rates, and Fees?
Crown’s equity release schemes are designed with the client in mind, offering competitive interest rates, transparent fees, and a variety of plan options to suit different financial situations.
Does Crown Provide Equity Release and Lifetime Mortgages?
Yes, Crown offers equity release to people aged between 60 and 95 with property valued at £80,000 to £1mln, situated in England or Wales.
Crown sometimes makes exceptions for applications from two or more homeowners with homes valued higher than £1mln.
What Are Crown’s Equity Release Schemes and Home Reversion Plans?
Crown’s equity release schemes are incredibly flexible.
If you choose Crown’s home reversion plan, it will buy all or a percentage of your home in return for a lump sum or regular monthly payments.
You can then decide whether you would like to pay rent on your property, which would enable you to release a larger amount.
The property is sold once you move into permanent care or pass away.
Once this happens, you (or your beneficiaries) will receive the percentage of your home’s value that you still own.
How Will Choosing Crown Equity Release Affect Your Inheritance?
Choosing Crown Equity Release will reduce the value of the estate you plan to leave to your heirs, as the amount you borrow, plus any accrued interest, is repaid from the sale of your home upon your passing or moving into long-term care.
However, Crown offers schemes that include inheritance protection features, allowing you to safeguard a portion of your property’s value for your beneficiaries.
It’s crucial to consider how this fits into your broader estate planning to ensure your loved ones are taken care of according to your wishes.
What Features Characterize Crown’s Equity Release Schemes?
Crown’s equity release scheme features include the possibility of releasing up to £350,000.
More features:
- Minimum age: 60
- Maximum age: 90
- Minimum release: £25,000
- Maximum release: £350,000
- Minimum property value: £50,000
- Maximum property value: £1mln
- Minimum lease: 170 years
Crown offers payment in the form of a lump sum or smaller monthly installments to supplement your retirement income.
The money released is always tax-free and enables you to unlock equity without selling your house or moving.
Crown will pay between 30% and 62.5% of your home’s current market value depending on your age, health condition, gender, and whether or not you are making a joint application.
It’s schemes are also more flexible than most providers when it comes to the type of property you own.
What Are Crown’s Equity Release and Home Reversion Interest Rates?
Crown’s home reversion plans offer no-rent, 1% rent, 3% rent, and 5% rent options.
Speak to your equity release advisor for more information on home reversion and how rent works.
Are you looking for a specific lifetime mortgage equity release scheme instead?
According to the Equity Release Council, as of January 2024, interest rates on equity release plans averaged around 5.25% to 6.30%.*3
*While we regularly review our rates, these may have changed since our last update.
What Fees Are Associated With Crown Equity Release?
Crown Equity Release’s fees do not currently include application or valuation fees. Speak to your financial advisor to find out about any fees and costs home reversion may incur.
Crown’s fees vary depending on the package you select. As with a regular mortgage, there are additional expenses and services that you will need to be aware of.
Crown does not charge extra for:
- Home valuation
- Product fees
- Lenders fees
What Options Exist for Early Repayment, Tools Available, Tax Implications, and Comparisons with Crown Equity Release?
Crown provides flexibility in early repayment options, along with tools for financial planning and detailed information on tax implications, setting them apart in the equity release market.
What Options Do You Have for Early Repayment, and Are There Any Penalties with Crown Equity Release?
Crown Equity Release may offer the option to repay your loan early, but this can come with penalties, depending on how soon you choose to settle the loan.
These penalties are designed to cover potential losses from the fixed interest rate agreement.
Before deciding on early repayment, it’s essential to understand the specific terms of your agreement, as these penalties can significantly impact the overall cost of your loan.
Does Crown Offer an Equity Release Calculator for Planning?
No, Crown does not have an equity release calculator, but if you are looking for an equity release calculator try our calculator below for an approximation.
What Are the Tax Implications of Receiving Funds from Crown Equity Release?
The funds you receive from Crown Equity Release are tax-free, allowing you to use the lump sum or regular payments without worrying about immediate tax liabilities.
However, how you use these funds can have tax implications, such as if you decide to invest the money and generate an income or capital gains.
It’s important to consult with a financial advisor to understand how this additional income may affect your tax position, especially concerning any means-tested benefits you may receive.
What Are the Pros and Cons of Using Crown Equity Release?
The advantages and disadvantages of Crown’s equity release include that it’s plans are funded by private investors; however, it only considers applications from clients referred by FCA-authorised and regulated equity release advisers.
More pros and cons:
What Are the Benefits of Choosing Crown Equity Release?
Pros of using Crown include the following:
- Crown considers any property type.
- Crown is authorised and regulated in the UK by the FCA.
- Crown is funded by private investors, which allows it to make high loan-to-value offers (up to 85%).
- The founder of Crown was one of the original directors of SHIP (Safe Home Income Plans), now known as the Equity Release Council.
What Are the Potential Risks of Choosing Crown Equity Release?
Cons of using Crown include the following:
- You must be over 60 years old to apply.
- Crown only considers applications from clients referred by FCA-authorised and regulated equity release advisers.
- Crown is not currently a member of the Equity Release Council.
- Equity release will impact the amount of inheritance you can leave.
How Does Crown Equity Release Compare to Other Equity Release Providers in the UK?
Crown Equity Release is distinguished by its competitive interest rates, transparent fee structure, and customer-centric approach, offering personalized plans that cater to individual financial situations.
Compared to other providers, Crown stands out for its flexibility, including options for inheritance protection and early repayment terms.
When considering equity release, it’s vital to compare these aspects alongside customer service and support, where Crown also aims to excel, ensuring you find the best fit for your retirement planning needs.
What Are the Reviews, Regulatory Details, and Contact Information for Crown Equity Release?
Crown Equity Release is highly rated for its customer service, adherence to regulatory standards, and easy access to detailed contact information for prospective and current clients.
How Was Crown Equity Release Information Reviewed and Analyzed?
We assessed and compiled the information on Crown by evaluating its plans, the costs involved, its eligibility criteria, and by listening to what its previous customers have to say about Crown.
We then factored that information against the other providers on the market.
This is an unaffiliated, independent review of Crown.
What Do Customers Say About Crown Equity Release and Home Reversion?
There are not currently any customer reviews of Crown Equity Release available.
What Are Common Complaints About Crown Equity and Mortgage Services?
If you are unhappy with the services you received from Crown and would like to make a complaint, you can do so via it’s website.
Customer satisfaction is a priority for Crown, so you can be sure that the matter will be dealt with accordingly.
Alternatively, you could leave a review on Feefo or Indeed.com.
Are there any reviews on Crown’s business finance services?
Finding out what others think about Crown’s business finance services can offer valuable insights into your decision-making process.
Many customers have shared their experiences online, highlighting the professionalism, support, and financial solutions provided by Crown.
These reviews often reflect on the company’s ability to tailor financial products to suit diverse business needs, illustrating a level of customization and care that sets Crown apart in the market.
You’ll notice a common theme of satisfaction regarding the clear communication and advice received from Crown.
This feedback underscores the company’s commitment to guiding businesses through their financial journeys with transparency and expertise.
Whether it’s expanding operations or managing cash flow, Crown’s business finance services have garnered positive remarks for their impactful solutions.
Crown Equity Release Regulatory Details
Crown Equity Release adheres to rigorous regulatory guidelines to ensure client security and trust.
What Trading Names Does Crown Use for Its Equity Release Services?
Crown Equity Release Limited
What Equity Release Services Are Permitted by Crown’s FCA Registration?
Mortgages and Home Finance
Who Regulates Crown Equity Release Services?
Financial Conduct Authority (FCA)
What Are the FCA Registration Numbers for Crown Equity Release?
- FCA Ref Number: 464925
- Companies House Number: 04252868
How to Find Crown Equity Release FCA and Companies House Information?
- FCA Link: FCA Link
- Companies House Link: Companies House Link
How Can You Contact Crown for Equity Release Inquiries?
- +44 20 8875 5665
- mking@crownequityrelease.com
- 128, Exeter Rd, Harrow, HA2 9PL, United Kingdom.
Frequently Asked Questions About Crown Equity Release
Explore commonly asked questions to understand better how Crown Equity Release can benefit homeowners.
How Does Crown Equity Release and Home Reversion Work?
What Are the Pros and Cons of Crown Home Reversion and Equity Release?
How Much Can You Borrow With Crown Equity Release?
What Are the Age Restrictions for Crown Equity Release?
What Are the Alternatives to Crown Equity Release and Home Reversion?
Is Crown a Member of the Equity Release Council?
Who Owns Crown and How Does It Affect Their Equity Release Services?
Where to Find Job Openings at Crown in the Equity Release Sector?
Does Crown Specialize in Equity Release and Lifetime Mortgages?
How Safe Is Crown's Equity Release for Homeowners?
Concluding Thoughts on Crown Equity Release Options
Crown equity release could be a great way to release cash from your home, via a home reversion plan, while residing there.
However, you should always seek professional advice before taking the next step.
A suitably qualified financial adviser can help you fully understand Crown’s equity release schemes and what you are committing to.
The features mentioned and the amounts raised, are subject to the lender’s criteria, terms and conditions. These may take into account the age, health and lifestyle factors in order to provide an enhanced amount. To understand the features and risks, ask for a personalised illustration.