After retirement, many people are facing financial problems. Now,
you no longer have to worry: the equity release is the alternative of a
steady income on the age when you need to focus on the beautiful side
of life.
Nowadays, a lot of people use equity to help fund of
their retirement. You need to be at least 55 years old and own a
property you can release the equity.
This is a good way to use on
the money currently tied up in your house. You'll have the chance to use
this money as a source of income, without giving up your property.
First of all, you have to know that you have two possibilities to use
it: home reversion plans and lifetime mortgages.
Lifetime Mortgages - No Monthly Payments
With
lifetime mortgages you get rid of monthly payments and your home is
fully insured. This method has a lot of advantages because the increases
in your property still benefit you, there is the option of a fixed rate
plan and additional borrowing is often possible. However, you must keep
in mind that early repayment penalties may apply, the tax position may
be affected and the amount raised is often lower than with house
reversion plans.
Home Reversion Plans, for Carefree Grandparents
With
home reversion plans you can receive a regular income, cash lump sum or
both. This method provides you a lifetime lease that guarantees you
still have the right to live in your home for the rest of your life. In
this way, you'll benefit from the increase in value on your share of the
property, the older you are, the more cash you can release and it
raises more money than a lifetime mortgage. You must take into account
that if you sell your house, your estate will not receive any
inheritance and you will no longer completely own your own property.
The Benefits of Equity Release
A
lot of older people who chose one of these plans, say they've made the
best choice for their lives. This kind of plans provides them sufficient
cash to replace their salaries until they reach 65 years old, thus
allowing the early retirement and no loss of pension rights. Besides
that, this gives you the possibility to receive the necessary funds to
undertake the repairs and modernization of your house. Thus, the value
of your home increases.
If your pension has not performed as well
as you expected, this equity release is the best method to get more
money. You should note that over the years you've put a large amount of
money into your property, and now, these amounts are locked away. The
equity release gives you the chance to benefit from these untapped
money. Choose between the two versions of equity release and you'll not
regret!
