Know about the various Equity Release Schemes UK

15.02.2012 | Author: jimwright | Posted in Mortgage
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Are you looking forward to improve your financial status? Is your financial condition facing some turmoil? Then it is obvious that you would love to have some financially beneficial scheme through which you can improve your financial condition. Under such circumstances, equity release schemes UK should be chosen by you to help your financial situation.

Before you know about the detailed information about the equity release schemes UK, the first thing you need to know is that to avail this financial beneficial scheme, one should have some property in his own name. Unless you have some property without any financial problem along with it, you will not be able to avail this financial profitable scheme. Therefore, you have to prove your possession of your property to the financial organization for availing this equity release scheme. In that case, the legal documents of your property would be an essential evidence to prove the property as your belonging.

There are mainly two types of equity release schemes UK available in the market. Here is a brief description about these popular equity schemes.

  • Lifetime Mortgage: Under this equity release scheme, the applicant has the opportunity to offer his property to the loan giving company for the rest of the life. In that case, the organization or some third party agency will offer the applicant a lump sum of money which will be considered as a loan amount. It is to be noted that the amount provided by the company to the applicant is not needed to be repaid to the4 loan giving company. Because, this loan amount will be repaid once the applicant will die and the company will sell the property to get the loan amount. However, before you offer your home for equity release in house, it would be crucial for you to know the exact worth of your property.
  • Home Reversion Plan: When you are looking forward to avail the house equity release plans through this equity release scheme, you would be able to reside in your property while use the rest of the asset to the loan giving company. Through this beneficial scheme, you will be able to reside in your property while you can have the chance to get some lump sum of money from the rest of your property.

    • In short, you will be able to get some financial benefit from your own property through the equity release in house schemes for bettering your financial status by using your own named property.

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