Can Equity Release Plans help Retirees Enjoy a Pleasurable Retired Life

13.03.2012 | Author: jimwright | Posted in Mortgage
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Do you have a property of your own? Despite, are you still looking for additional income to lead your entire retired life with pleasure? Well, you have the biggest asset of your life which is your property and this in fact can fetch you steady income for lifetime. So, you must be wondering how this is possible. Retirees in the United Kingdom have mostly enrolled themselves in equity release plans and have rather brought remarkable changes in their lifestyle. If you are one of them looking forward to earn loads of cash right from your own property, equity release is the best option.

The concept of the equity release plans might sound a bit complicated. Here, the equity release applicant receives a certain amount of cash on selling his property. However, if the applicant is required to repay any outstanding mortgage, the amount is deducted from the cash he receives from the agent of the home reversion company. In fact, the applicant enjoys the right to draw any amount he wishes with which he can even buy a property, get a new car or plan a trip abroad. However, there are certain conditions meeting which can allow the homeowner take advantage of an equity release policy:

  • The applicant must be the owner of his property. Equity release plans are only applicable for homeowners as well as those who are 55 and above.
  • The property which you are going to put into consideration must be in good conditions. Remember, your property appraiser will come for inspection and thereafter will let you know whether you are eligible for releasing equity against your property. So, you must keep it clean and renovated so that you get good returns in exchange.
  • You must be residing anywhere in the United Kingdom. Equity release plans are solely designed for retired Britons.

    • Use of Equity Release Calculator

    Now, a question might be lingering in your mind as how to calculate your monthly income with any of the equity release plans. The best device in this context is none other than an equity release calculator. However, you need to answer some questions prior to using such a calculator. For instance, you need to insert information regarding your age, residential address, property location and the exact area where you reside. Once you have placed the information in the equity release calculator, you will get an approximate value for the valuation of your property. However, it’s always advisable to get in touch with a professional equity release agent who can help you know all the pros and cons of the schemes.

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