Release equity in home is a popular financing method for senior citizens
Your liberty to spend money as per your wish just comes to an end on the day you retire from your profession. You might feel a bit low after hearing this, but that’s exactly how the world thinks. With prices of basic amenities reaching a soaring high level, it is becoming difficult for the common man to lead a normal life. a happy retired life is what all of us desire, but if you go down a bit deep you’ll find the truth. Even if you have saved oodles of money in your bank or are entitled to receive pensions, a financial crunch is what you are likely to experience if you are not prepared to face the current economic status. Most people are subjected to confront with dire financial conditions because of improper post-retirement planning. Release equity in home comes to the rescue of the financially terror stricken senior population.
A fall back cushion for seniors, release equity in home is considered one of the most popular financing methods in use. It is more of a financial crisis management scheme helping the retired to enjoy a healthy monetary condition. This special equity release plan is designed for the older generation so that they are able to acquire an amount equivalent to the monetary worth of the house they live in. yes, these are a type of loans issued against the house owned by the individual. Some of the major characteristics of equity release for homes are discussed below:
1) The loan can be achieved either as a lump sum or as monthly income
2) Even if you have mortgaged your house, you can enjoy your stay till you live
3) You don’t need to worry about loan repayments; the lender takes control over your property after your demise
4) The loaned amount would be repaid from the profits earned by selling the property
5) There are no specific time period to which the borrower has to repay the amount
Release equity in home is categorized under lifetime mortgages and home reversion schemes. While the former allows the individual to enjoy a financially secured life till his death, the later is where he is given a financial backup against a portion of the monetary value of his home. Let me explain both of them in short sentences. The lifetime mortgage equity release scheme seems similar as that of other general mortgage. In this case upon death of the borrower the lender takes ownership of his home and sells it off and acquires the sales proceeds derived from the transaction. In case of home reversion equity release plan a part of the sales proceed is acquired by the lender and the rest is transferred as inheritance.
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