Release Equity in Home – A Good Way to Maintain Standard of Living
Why does the equity release in house is introduced
With the advancement in the arena of medical, nowadays, the life span of individuals is much longer than earlier. The terrible economic condition of these days is forcing many individuals to face utter difficulty in even meeting the basic livelihood or maintain their homes. Majority of the crowd is finding it harder than previous days to meet the regular expenses of running their houses and situation becomes more troublesome while the individuals get retired from their works.
Running and maintaining a family depending on the meager income coming from post retirement pension is indeed difficult and sometimes it is not even sufficient enough to meet their basic requirements in their winter times. This circumstance is the chief cause for the development of release equity in home. Release equity on house truly assists the individuals to get a lump sum amount or sometimes a monthly income to maintain their standard of living even after their retirement from the work.
What does it mean by equity
These release equity in home is a good solution to make it possible for the owners of home to stay in their homes for remaining days of their life and still enjoy a regular earning as well. Equity actually implies the worth of the residential property of the individual. If the individuals yet have the mortgage or loan going on it then the cost of that credit is to be deducted from the entire value of the home. Without any loan already attached with that home, the actual value of equity of that house will be the total worth of that home.
What are the factors that affect the value of the home
There are few factors which can indeed make the difference in the value of the home. These are indeed vital ones for the individuals to know so that they can work on it well in order to augment the actual value of their residential property. These factors have a great influence on the cost of their house and help them to calculate the equity value of their home.
Provided below are the two factors on which the value of release equity in home severely depends-
1)Location of the residential property: location of the house is very important factor. The price of a house can be higher or lower greatly depends on the location of the property. If the home is in some posh area the release equity on house will be much higher than some property in the outskirt of the city. Again areas with good communication facilities, connected through roadways etc can also result in higher price of the home. Furthermore residential properties close to amusement areas, clubs, and shopping centers fetch more money.
2)Size of the residential property: again size of the residential property plays an essential role on determining the price of the home. A big property can always fetch a better price than a smaller home. The equity providers are going to sale those properties in future and they know well that bigger homes are always in demand and fascinate people. Therefore they always pay good money for bigger houses. So bigger houses get greater release equity on houses.
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