Understanding Home Equity Release or Release Equity in Home
It is obvious that every single person would like to lead a comfortable and tension free life after retirement. But most of the people have to face financial problems due to the less amount of pension drawn by them. Therefore, there is a need for financial help so that the retired people are able to lead a peaceful and relaxed life post retirement. One of the best solutions which can be really helpful to the people in solving their financial problems after retirement is home equity release. There are various kinds of equity release schemes to suit different requirements of the people. They provide financial security to the retired people and enable them to enjoy the golden period of their life.
However, everyone is not eligible to avail the benefits of these schemes because there are some conditions which are required to be fulfilled in order to release equity in home. They are:
- The person who wishes to take up an equity release scheme should be 55 years of age or more. However, it must be noted that more the age of the people higher will be the rates offered to them.
- The person applying for release equity schemes should be the owner of the property from which the equity has to be released.
- There should not be any outstanding mortgages or debts against the property from which the equity has to be released. In case there are any dues, they must be paid off before equity is released from the property.
- The condition of the property should be good or else it should be repaired and renovated before taking up home equity release schemes.
- The market valuation of the property should also be good in the real estate market.
Thus, a person is able to release equity in home once all the above mentioned conditions are fulfilled. Further, it is to be noted that there are several advantages of these equity release schemes. They are:
- The person taking up this plan can retain the ownership of the property even after releasing equity from it.
- The amount of money released from the property can be received either in lump sum or in regular monthly installments.
- These release equity schemes also help in reducing inheritance tax to a considerable extent.
Further, in case of any confusion regarding home equity release or release equity in home it is advisable to seek proper guidance from a professional.
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