Face retirement on a pension today's standards, many of us are looking for a way to raise the money pot, we have access to later in life. If you are over 55 and own your own home, the equity release could help you get a lump sum of cash, increase your monthly income or provide a combination of both to help you finance your style of life.equity release allows seniors to release money locked up in their property - usually their largest and most valuable asset. It is an alternative to taking on bank loans and credit cards in later life, when the monthly income is often limited. The money released can be used for anything from home improvements to health care; there are no limits on how you choose to spend it.
release Options Equity
There are two types of release of equity: lifetime mortgages and home reversion schemes. The two options differ in several areas. Use our expert guide below to learn more about the difference between the two
Age
Mortgage Life :. The minimum age is 55 years or more usually 60, and the percentage of your property, you can borrow will increase the older you are. At age 65, you will see that you can borrow somewhere in the region of 20 to 25 percent of the value of your homereversion Home Scheme :. You can sell up to 100 percent of your property, and the older you are, the more you get. You can also get a higher value if you are in poor health.
Ownership
Lifetime Mortgage: You will continue to be the owner of the property and can live for as long as you choose, or until you move into a care home or die. The money is released is considered a loan secured against your home and interest is charged. Usually, interest is paid when your property is sold at your death or when you move into care ..reversion Home Scheme: Actually, you sell a proportion of your property and, therefore, only to retain ownership of the percentage you choose to keep. You can, however, live in the property as long as you want - until you die or move to long-term care.
Inheritance
Either Plan provides the opportunity to leave money to your heirs, but there will always be a reduction in the overall amount when you choose to embark on an equity release plan. One of the advantages of home reversion is that you can ensure that part of the property that you have not sold will be sent to your beneficiaries.
Monthly payments
mortgage life: There is no required monthly payments, but you may choose to repay interests in order to reduce the amount due when the plan ends. This allows you to leave more to your family when you are goneHome reversion plan: .. You are not required to make monthly payments
given the equity release?
Equity release could provide the financial support you need to enjoy your life and live more comfortably in retirement. The first step is to contact an expert in the field to find out if you qualify, and it would be the right diet for your situation.
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