Release equity in home to fight financial crunches post retirement

15.12.2011 | Author: dorthy.williams123 | Posted in Mortgage
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Are you a retired person and worried about your financial condition? Are you not being able to lead your life happily with the amount of pension that you are drawing after retirement? Are health problems and the expenses incurred in it a constant worry for you? If you are answering in affirmative to all the above questions, it is clear that you are in need of financial help. One of the solutions that you can look forward to is to release equity in home. There are various kinds of plans and schemes that are on offer for retired people so that they can overcome their financial constraints and lead a peaceful and relaxed retired life. Equity release plans are among these schemes and are very effective and popular with people particularly in the UK. These not only provide financial security to the retired people, but also make them feel relaxed and secured from all angles.

There are some conditions that need to be fulfilled in order to release equity in home. These are as follows:

  • The person taking up the equity release plan must be minimum 55 years of age. However, more the age of the person, higher rates are offered to the senior citizens.
  • The retired person should have the ownership of the property against which equity is being released. Without having ownership of the property, one will not be able to release equity in home.
  • There should be no outstanding mortgages and debts against the property in the market. In case there are some, all the dues have to be settled before equity release from the property.
  • The property should be in good condition and if not should be renovated and repaired prior to release equity in home.
  • The property should have good valuation in the property market. A minimum valuation of £70000 is expected from the property for sure for equity release.

    • On satisfying all the above mentioned conditions, one can release equity in home. The various advantages of equity release are as follows:

  • The retired person can stay in the same property till his death even after equity release from property.
  • The money that is offered on release equity in home can be taken at one time in lump sum or in monthly installments so that regular expenses can be met with comfortably.
  • With equity release from property, the amount of inheritance tax also reduces considerably.
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