14 Dec The Easiest Way To Find Out How Much Equity You Have In Your Property
Understanding equity and how it works is often a tricky task for homeowners. To simplify things considerably, liquid or releasable equity is the amount of money a bank will allow you to access via borrowing against your home. While accessing your equity is a big decision as it increases the amount of money you owe the bank, there are several extremely good reasons to do so, with equity often accessed so that homeowners can go on holiday, buy new cars, make smart investments, or otherwise improve their lifestyles.
Determining How Much Equity You Have
So, how do you determine how much equity is accessible to you? Often, this is not an easy task. In fact, it might just be one of the most difficult tasks faced by homeowners in an ever-fluctuating property market, which is an issue given that it’s obviously extremely important to know exactly how much money is available to you.
The traditional way of discovering how much equity you have in your home is via a formal bank valuation. Bank valuations are a costly process and can often be slow. Given that many homeowners will be dissatisfied with their initial valuations and will seek to increase their equity by, for example, renovating their homes, the costs associated with a bank valuation are very often sunk costs that need to be paid twice or more.
Doesn’t sound appealing, does it? Thankfully, new ways of valuing your property and discovering how much equity you could instantly release are beginning to emerge.
These days, one of the most convenient new methods for doing discovering how much equity you have in your property is via an online calculator. Websites such as http://www.responsibleequityrelease.co.uk host calculators that will tell you, quickly and without any fees charged, exactly how much equity you have in your home.
How it Works
An online calculator letting you know how much equity you have in your home sounds almost too good to be true, doesn’t it? So, understandably, you might be wondering how this dream of a system works. The answer, in a nutshell, is that it works very simply. All you have to do is head over to the website and input a few key details about your home. These details include the first line of your address, your postcode, and the value of your property. After that, all you have to do is provide a contact name, email, and telephone number.
Once the calculator’s algorithm has calculated how much equity you have in your home by a process which is nearly instantaneous, the results will be emailed to you and you’ll know exactly how much money you have to play with. From there, you can consider your options. You might not have enough equity, in which case you can seek to increase your equity and borrowing power via a renovation. Or, you might have enough equity and wind up booking an exciting holiday!