Equity release on property is easy solution to many retirement problems

11.01.2012 | Author: jimwright | Posted in Mortgage
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On approaching retirement, financial matters are great issues that need lots of concern. It has been seen that people who have foresightedness start planning for their retirement quite in advance so that there are no hassles in the retired people. But that might not be possible for everybody. It might happen that inspite of planning; you are in need of lump sum money all of a sudden for treatment or other kind of crisis. In such situations you can release equity in home to gather immediate funds on lump sum basis. However there are certain criteria that you have to fulfill in order to be able to equity release on property.

Here is a list of the credentials that you have to meet to be able to release equity from the property:

  • Your age has to be 55 years or more at the time when you decide for equity release on property.
  • The property from which equity will be released should be under your ownership.
  • There should be no outstanding mortgages or debts on the property.
  • The property should be in good condition. In case there are damages, it should be repaired and renovated before you release equity in home.
  • The property should have a standard valuation of £70000-£75000 in the UK property market at the time of releasing equity.

    • When all the above mentioned conditions are fulfilled only then will you be able to release equity from your property. If you do not wish to release equity from the entire property, you can also do it for a part of the property. Along with this, more the age of the person, higher is the rate of interest that is offered.

    There are many advantages of equity release on property. Some of them are as follows:

  • Even after releasing equity from a part or whole of property, the owner does not need to leave the property. He can live in the same property till the time he is alive. This saves the hassles of relocation in old age which is quite tiring and psychologically disturbing.
  • After you release equity in home, you will be given money against it which you can take in two ways. You can take it one time in lump sum or on monthly installment basis. The money can be taken on jointly basis so that even if one person expires the other keeps on getting the money.
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