As many people in the UK find it hard to maintain a good living, equity release schemes are becoming extremely popular.

Equity release schemes are specially designed for elderly people between 55 to 95 years of age. With an equity release scheme, homeowners can either get a lump sum amount or regular income.

The beauty of equity release schemes is that homeowners can continue to live in their property for their lifetime. When the homeowner passes away, the beneficiaries will sell the property with the lender being repaid from the sale of the property. Once sold, any remaining equity will be passed to the beneficiaries named in the Will, if one has been made. Should the equity release plan holder die intestate, then the net proceeds will be paid in accordance with the rules of intestacy . This happens if the property is sold for a considerably larger amount than what the balance of the equity release is.

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Different options of equity release schemes

The reversion companies offer equity release schemes with different options such as tax free lump sum  and home income plans. Home income plans are perfect for senior citizens who want their money in the form of a pension. The amount of equity released is distributed as income or pensions for the rest of their life. This would be in the form of an annuity, which is basically exchanging a lump sum in return for a regular income for the rest of your life.

In such cases, if the equity release applicant has poor health then impaired life terms maybe available. which enhance the standard terms normally paid. This is due to the fact that if the annuity provider considers that life expectancy is potentially reduced due to health reasons, then they can increase the lump sum normally available.

The amount that you will receive via equity release scheme will depend on several factors such as your age, the type of property & its current market value.

If you are looking for the best way to generate income during your retirement, equity release can be an excellent solution to assist the enjoyment of your retirement years.

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To establish whether you will be eligible for an equity release with enhanced terms, please contact the Equity Release team on 0800 783 9652 or visit the Equity Release Supermarket website by clicking here.

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The popularity of equity release schemes has risen a great deal in the last few years. The main reason for this is that they are geared towards meeting the needs of senior citizens. In addition to this, they can be attained quite easily. It is for this reason that more and more financial advisers are recommending equity release schemes to senior citizens so they can make ends meet for the future.

However, people can only be eligible for equity release schemes under certain circumstances. The following are some requirements for gaining equity release schemes.

Age

Most equity release schemes are available to those who are over 55 years. But there are other schemes that are applicable to those over 65 years. The age requirement is meant to provide additional financial stability and security for those who get a limited income through benefit payments or those reaching retirement. Age determines the amount you gain through these schemes.

Ownership

Another requirement to be eligible for equity release schemes is complete ownership of the home being used as equity. As the value of the home is the important factor in securing a loan, it also determines the amount that can be borrowed through equity release schemes. However, it is necessary for mortgages to be cleared before a scheme can be undertaken.

It is important to understand that different people have different requirements and that equity release schemes may not be suitable for everyone. For this reason, it is necessary to learn as much as you can about equity release schemes. You should also make sure that you get appropriate advice from a professional.

Equity release schemes are a financial vehicle that can provide you with access to the equity that you have built-up in your home. There are two types of equity release schemes available – a ‘lifetime roll-up’ & a ‘home reversion scheme’.

With the Roll-Up scheme, the need to sell your property is completely eliminated, whilst with a Home Reversion Scheme you can sell a percentage of your home in order to potentially raise a greater amount of tax free cash.

The roll-up lifetime mortgage scheme is available individuals above 55 years of age, whilst home reversion schemes commence at age 65.

Equity release schemes are great means to use the capital invested in their home. At the same time, individuals can still continue to stay in their home either until they have either died or moved into long term care. At this point the property will need to be sold. Dependent on whom the equity release lender is, will determine how long the beneficiaries have to sell their parents property. This period can range from 6 months with LV= & upto 12 months with equity release companies like Aviva & Just Retirement.

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Do you qualify for an equity release scheme?
If you own a property and your age is over 55 years, you can become eligible to take part in a range of equity release schemes. Your property must also be of an acceptable structure & type to the lender & have a minimum property value of £70,000.

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Why should you obtain independent equity release advice?
As there are regular changes in financial services and legal regulations from time to time, you must discuss your situation with an independent financial adviser such as Equity Release Supermarket. They have access to the whole of the equity release marketplace. Their advice would involve gathering details of your current financial situation, understanding your objectives & then recommending suitable equity release schemes for you. With your agreement they can complete & process your equity release application through to the final stages when the funds are released by the lender to your legal representative.

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Why opt for equity release schemes?
Equity release schemes are great for people looking forward to obtain extra money in their life. The equity release schemes help individuals who are looking for tax-free means to access their money to help their children get on the property ladder by way of their initial deposit.
Retired individuals may also even help themselves in purchasing a new home. This can be when they wish to potentially move upto a property that is more expensive than the one they are currently living in. Equity release schemes can provide the cash shortfall, (like a mortgage does) to bridge the difference between the purchase & sale price of the two properties.

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Irrespective of the reason, when investing in an equity release scheme, opting to take help from an independent professional financial advisor is a wise decision.

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Call 0800 783 9652 for independent equity release advice