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Archive for January, 2011

Equity Release Schemes – Some Important Points To Consider

Sunday, January 30th, 2011

Every individual wants to live a comfortable life post-retirement. However, sometimes lack of capital can cause financial discomfort post-retirement. In such cases, equity release schemes can act as a saviour. They can really help retired individuals who are going through a financial crisis.

 

There are certain key points that you should consider before applying for an equity release scheme. Some of these points are as follows:

 

Age restrictions:

Only those individuals who are aged above 55 and own their own property are eligible for equity release. Moreover, retired individuals can also continue to live in their homes. This is the reason why these schemes are immensely popular among older homeowners in the UK.

 

Types of equity release schemes

There are many different types of equity release schemes available today. Some of them are as follows:

• Home reversion
• Lifetime mortgage
• Interest only mortgage

 

Each of these equity release plans has different coverage features. For instance, in home reversion, individuals have to sell off a part of their homes to release some equity. This amount can be received in installments.

 

Professional advice

It is better that you consult a financial expert before you take out an equity release plan. In this way, you can get the best available policy.

 

Equity Release Schemes – Understanding The Concept

Saturday, January 29th, 2011

Equity release schemes are fast gaining popularity these days. These schemes are basically methods which allow you to release some of the equity in your property.

Equity release is a great proposition for anyone who is above 50 years of age who has financial worries. It can also help those individuals who want to secure their lives post-retirement. Equity release also allows individuals to capitalise on the amount invested in their property.

 

How do you know you qualify for the scheme?

If you are above 50 years old and own a property of your own you may be entitled to release some of its equity. You should always consult experts such as financial consultants before proceeding with an equity release scheme so you know the risks involved.

 

Why should you choose an equity release scheme?

The answer to this question varies from individual to individual. Usually, people need extra money to continue to live a suitable standard. Some people release equity to help their children or families. On the other hand, some people choose an equity release scheme to keep up with their monthly heating or food bills or other day-to-day expenses.

 

Irrespective of the reason for taking out an equity release plan; individuals should always consult a financial consultant or advisor.

 

Equity Release – A Financial Solution To All Your Retirement Worries

Sunday, January 16th, 2011

Equity release refers to a secured mortgage arrangement for retired homeowners in the UK. It allows older people to unlock the equity from their property and use it for any purpose they want. With equity release schemes, the retired homeowners can release the equity they have accumulated in their property for years.

 

Who can apply for equity release?

When it comes to equity release schemes, there are few rules in regards to who can opt for them. The older you are, the more equity can be released from your home. In order to qualify for an equity release loan, there are some important criteria you need to fulfil. You should:

• Be aged 55 – 95 years
• Possess your own home
• Own a property costing £60,000 or more
• Have no or little mortgage
• Have a leasehold or freehold property with a minimum lease period of 75 years

 

The arrangement of equity release is usually set up by a qualified lending institution. The money can be received as lump sum, a monthly instalment or a combination of both. The best part of equity release is the fact that it allows homeowners to live in their property for a lifetime. After the property owner passes away, the property is sold and the lending institution regains its money.

Depending on the seller’s financial position, the buyer can take equity as a monthly payment or a lump sum. Unlike other mortgage loans, the cash unlocked from equity release is completely tax free. This allows the borrowers to spend the money in any way they want.

So, if you are looking to generate additional income post retirement, opt for equity release.

 

Equity Release Schemes – An Introduction And Different Types

Monday, January 10th, 2011

Equity release schemes are a method by which home owners can acquire tax-free income from their property. This process ensures a financially stable future. These schemes let you be in charge of the equity which has built up in your house. Equity is the remaining worth of your property after the mortgage has been paid off.

If you are a homeowner nearing 60, equity release schemes can give you a tax free lump sum or a regular income. You can spend this money on whatever you wish.

 

There are two main schemes, namely lifetime mortgages and home reversion plans.

 

Lifetime mortgages – how do they work?

You have access to an amount of money calculated by the value of your house. The money comes to you as a lump sum, as regular income or as a combination. You continue to own and live in your house and while interest is levied, it is added to the value of the loan so that the actual loan amount rises over time. The loan and the interest charges are paid back when the house is sold.

 

 
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