How to Benefit from Equity Release or Release Equity in Home
It is very difficult to lead life without finance. It is the most important thing in our lives. Each and every person works hard to lead life with a respectable standard of living but after retirement it becomes difficult to maintain that standard of living because the pension is not sufficient to meet the expenses of the family. In such a situation equity release or release equity in home is the only solution. However, not everyone is eligible for this.
In order to be eligible for equity release you must be 55 years of age or more and must possess a house or property against which you will receive release equity in home. You can receive the amount of money in lump sum or in regular installments. An important benefit of equity release is that you do not have to leave your house and maintain the ownership of the property. Moreover, there is no need to repay the amount received as release equity in home. The equity release provider will recover the amount of money by selling the house or property after the death of the property owner.
Actually, there are two schemes available under equity release. They are Lifetime Mortgage and Home Reversion scheme. In Lifetime Mortgage type of release equity in home scheme you can take a loan against your house and you will be able to stay in the house until you die. The loan will be repaid to the equity release provider by selling the property after your death and there is no need to repay any amount during the mortgage tenure. In the Home Reversion scheme of equity release you will have to sell whole or a part of your house or property to a company providing release equity in home. Although, the ownership in this scheme is transferred but still you can stay in the house until you die. Under this plan you will get less amount of money than the market value because the purchaser will not be able to utilize it until you die. The amount can be received either in lump sum or as regular monthly income.
Equity release or release equity in home plans are very complicated because the schemes are not suitable for everyone and it is necessary to select a plan according to one’s needs. Therefore, it becomes important to seek help from an experienced financial advisor he or she can provide you necessary guidance to find the best option for you.
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