Are you in need of equity release?
At an older age you should be financially strong to paY for your health, increasing your assets,expenditure such as buying a luxurious car or taking your family for outing.After retirement you are devoid of your salary and you do not have enough savings.At this point of time you require your equity to be encashed for your need but it is a big desscision.
An equity release entitles you to use a part of it in your home as income in regular basis or you can convert it to tax-free cash for spending.You can continue to live in your home after you release your equity.For this your age should be above 55 years.
At a perticular stage of your life you may like to release some of the equity in your home.This is a wise decision but first you should talk about it with the family members and then proceed.
It is a tougher decision to take. It is advisable to take the views of your family members to come out with any suitable options, such as, if you are are stressed in managing your home you could move to a smaller house instead. Your family may be emotionally attached to your home and they could assist you financially, rather than loosing their family property.Or you can arrange finance from a third party but he can always pay you less than the cost of your house.It will definitely have an impact on what you can pass on to your children after you die.
In most cases, lenders do not pay you advance over 50% of the value of your house.Also the amount you can borrow depends upon the value of your property and your age.Your age is directly proportional to the money you can get.
Usually there are three major category of release product on the market.You have to be careful and select the one having industry approval which is visible by the SHIP logo(safe home income plans).It is an administrating body which conducts smoothly equity release schemes.Firms which belong to this body offer a number of fascilities, including having the right to stay in your house for life; you can freely move to another house without any fine; and never owing more than the price of your house.
What is home reversion plans:
If you sell your property or a part of it then you money in lump sum or monthly returns or a combination of both.Actually you become a renter, and stay in your own house.After your death when the property is put up for sell the amount is paid to the loosing company. Home income plans- you do a mortgage against your house and use the money to buy an annuity.For the rest of your life you are ensured to a sum of money from the annuity. Interest on the mortgage is subtracted from the monthly income.
Lifetime mortgages means you are entitled to get a lump-sum or regular income or both without any payment.The interest amount on that money is added into the loan.The loan and interest is refunded at the time of the sell of the house after your death.
If you are in such kind of circumstance and have decided to make use of equity release product Then it is advised to talk to an independent financial adviser(IFA).An IFA wilkl see to it that you have taken into account all the alternatives.
For more information on Equity Release Please Visit our website ::-http://www.keyrs.co.uk/
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