Equity Release UK Schemes can Enrich your Retirement Days
Owing to the huge escalation in fuel prices as well as daily commodities, many retired Britons almost fell into a sea of perils. Pensioners got tensed in the thought as how they would manage their daily expenses. Finally, the equity release schemes came like the ultimate savior in their lives. Today, countless retirees are leading happy and carefree lives than those suffering pensioners. In comparison to pensions, equity release schemes are far better in terms of security. As far as the concept goes, here a certain portion of the homeowner’s property is converted to cash which comes absolutely debt-free. For almost all equity release UK schemes, the minimum age should be fifty five.
What’s best about these equity release plans is that you can receive up to 50% of the value of your own property which is never possible with pension plans. In fact, senior citizens or much older people can fetch bigger amounts relative to their ages. The money earned can be utilized for any purpose. Whether you are planning to make home renovations, spend on health treatments, buy a four-wheeler for family or spent for a world tour, the money is all yours. Remember, the best equity release plans can only help you earn loads of cash at the end of every month.
Earlier, equity release UK schemes had indeed a bad name. The interest rates kept on rising and the property value kept on soaring higher and higher. This made retirees step back from going with such an expensive option. Today, the scenario has undergone a drastic change. Schemes like Lifetime Mortgage and Home Reversion plans have opened doors of prosperity for numerous retirees.
The equity release UK providers got big lessons after the plans failed to hit the international market in the late 80s. Coming to the current equity release UK schemes, Lifetime Mortgages and Home Reversion plans are the most preferred ones.
In case of a lifetime mortgage scheme which is considered to be one of the safest and best equity release schemes, you need to provide lump sum cash from your own property which will be completely tax-free. However, one is not required to make repayments since they can be deferred till the property gets finally sold or the person dies or shifts into any other residence. At this point of time, the actual advance along with the outstanding interest is repaid.
In case of Home Reversion plans, the entire or a certain portion of the property is sold to a home reversion company. In return, the claimant receives an assured lifetime tenancy. Once the property is sold, the investor gets all the proceeds in relation to the share of the property along with appreciation if any. This is one of the best equity release schemes for older people who are not bothered to leave behind any inheritance.
There are plenty of companies that offer equity release UK schemes. You can even talk to independent advisors and know the best equity release policies that can strongly support your retirement era.
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