Archive for the ‘Topics’ Category
Monday, August 23rd, 2010
If you are 55 plus and own your own home that is your main residence, then you are eligible to choose from any of the current equity release schemes.
Today, many retired people are opting for equity release schemes because they offer a lump sum of money against the value of the property. Home reversion plan and lifetime mortgages are two different types of equity release schemes.
By opting for home reversion plans, you can sell all or just a part of your property in exchange for money. This tax-free cash will help you to live the rest of your life in financial security. There is also a lifetime mortgage scheme which allows homeowners to sell their whole property for money.
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Lifetime mortgages are further divided into various types such as:
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Roll-up plan – Under this scheme, you can borrow an amount of money from the mortgage lender against your home. You do not have to make any payments to the lender in order to repay the equity release mortgage. Instead the interest charged is added to your last years balance & compounded annually thereafter. Therefore the balance will increase year by year until the equity release planholder either moves into care or dies. At this point, the property is usually sold & the equity release company is repaid.
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Home income plan – By opting for this scheme, you will receive a regular monthly income against your home. In this scenario, a percentage of the value of the property is sold in exchange for a tax free lump sum. These funds are used to purchase an annuity which is how the scheme then provides the monthly income. The lender or financial institution will be paid by selling the home after you die.
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Interest-only mortgage – Unlike the roll-up plan, this type of equity release scheme allows you to pay off the interest charged monthly. Therefore the balance of the mortgage will remain exactly the same for the duration of the plan term. As a consequence the beneficiaries will know the exact amount that will be deducted from their inheritance. The actual loan is again repaid by selling the property.
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Out of the above mentioned lifetime mortgage schemes; you can choose the one which suits your financial needs by contacting Equity Release Supermarket on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, Home Income Plans, home reversion, home reversion schemes, interest only mortgage, roll-up scheme
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Sunday, August 22nd, 2010
Equity release is a concept which is often misunderstood. It is a common myth that you lose your property if you opt for this scheme. This is not the case.
Equity release is the equity tied up in your property that you can now release. This facility lets you still enjoy the ownership rights by mortgaging your assets. equity release schemes give you all the ownership rights of your property till you die.
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What are the different types of equity?
There are two types of equity release scheme:
Lifetime mortgage: A lifetime mortgage scheme lets you retain complete ownership of your assets. An individual who takes the loan has no responsible any monthly payments. The loan is eventually repaid by the legal heirs after the plan holder moves into care or eventually dies. Hence, the reason why this is known as a lifetime mortgage scheme.
Home Reversion scheme: You need to sell part or all of your property to the reversion provider for this scheme to work.
There are three reasons how the size of the release can be affected: -
- the greater the percentage of the property sold, the greater the size of the release
- the older the equity release applicant, the higher the amount that can be raised
- if their is an element of ill-health, then the home reversion provider can release a larger than normal cash lump sum
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Types of payment
There are two types of method of receipt of the cash payment you get in an equity release scheme; a lump sum and a monthly payment. You can opt for one of these payments dependent on your needs.
A lump sum amount can be used for capital expenditures, while monthly payments can be chosen by those who need a regular income.
The most important benefit of equity release is that it gives you tax-free money. The only thing you need to remember is that you can mortgage the property which you own.
The minimum age to be eligible for these schemes is 55 years for a lifetime mortgage and 65 for the reversion scheme.
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To obtain advice on which is the right equity release scheme for you please ring the Equity Release Supermarket team on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, impaired life, lifetime mortgage schemes, lifetime mortgages
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Sunday, August 22nd, 2010
Due to the increased volume in quality mortgage leads being generated, Equity Release Supermarket are now looking to expand its adviser roles to encompass a qualified & experienced mortgage adviser.
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Job Overview
Equity Release Supermarket is looking for an experienced Mortgage Adviser to join our practice on a self employed basis.
Excellent mortgage lead generation is provided via our innovative website.x
Leads have been developed in a niche post retirement market which can be discussed further upon application.
Additional lead generation opportunities will exist in the equity release sector, once a satisfactory induction period has been completed.
Full admin and IT support will be provided and the adviser will need to be located in the North West as access to our Birchwood branch will be required.
Approached with the right attitude and self motivation, the position is highly rewarding with realistic targets and uncapped earnings.
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Duties
Main duties include contacting clients from the leads provided, to arranging face-to-face or mainly telephone appointments. Also, prospecting for self generated business from your own client bank or building professional relationships will be expected in due course.
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Qualifications
The ideal candidate will have gained CF1, CF6 and ER1 or equivalent, will be a positive and enthusiastic industry professional with a proven track record in a regulated environment.
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For further information, please contact Mark Gregory on 0800 783 9652 or email your CV to mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, Equity Release Jobs, Halifax Retirement Home Plan, mortgage adviser, Mortgage adviser jobs
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Friday, August 13th, 2010
There is no doubt historically, that buying property long term has been a profitable investment.
This phenomenon is now becoming of great assistance to people nearing retirement and needing an additional source of income to help live comfortably. Older homeowners now have the option to free up money from their home to gain a steady income. This can be done though equity release schemes which enable homeowners to release accumulated equity in their property.
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Why would people want equity release?
The main reason to opt for this process is to free up money in a property. This money can be used to accomplish a number of purposes. While some homeowners prefer to use the money on daily expenses to make their lives better, others use it for taking holidays or to buy personal items they want or need. Regardless of the need, equity release can help achieve this quickly and easily.
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Is it an ideal option?
Equity release can be an ideal way for retired people to get a certain percentage of income from their properties. However, the convenience of this option differs from person to person. While some people prefer to get regular payments from their homes without moving out, there are others who would want use their property to get a large tax free lump sum.
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Do I need legal advice?
This is one of the most common questions people ask themselves when asking about equity release. Although it sounds like a fairly simple process, it is best to have a professional overseeing the process. This will ensure the scheme is suitable and beneficial for you. One of the aspects the solictor must undertake to comfirm he/she is satisfied the client understands the contract they are entering into, is the signing of the SHIP certificate.
This confirms the solicitor has discussed the equity release scheme with the client, & is happy, that they are happy, with the process & legal implications of taking out equity release form the property.
Equity Release Supermarket can recommend a solicitor who is a member of ERSA. This is an alliance formed between a group of established law firms &specialise within the field of equity release. These solicitors aim to promote the importance of specialist legal advice within the equity release marketplace.
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To find a solicitor who can act on your behalf contact the Equity Release Supermarket team on 0800 783 9652.
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Tags: equity release, equity release schemes, equity release solicitor, ERSA, SHIP
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Wednesday, August 11th, 2010
After retirement, life can be quite difficult as you may not be able to spend with the same comfort and ease as you did during your working life.
Thus, you need to look for a source that can offer financial protection to you during your old age. Equity release schemes help the elderly to spend a luxurious and comfortable life after their retirement.
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Some facts about equity release schemes
Stability
Mortgage equity release schemes allow homeowners to unlock the equity that they have built in their homes. Homeowners can opt for a lump sum or monthly payment option, depending on their requirements.
One can even get a combination of both. The best part about equity release schemes is that the homeowner can continue to stay in their property.
Additionally, all schemes that Equity Release Supermarket recommend have the ‘no negative equity‘ guarantee built in at no extra cost. These schemes must have this built within if they are to be allowed to be members of SHIP (Safe Home Income Plans).
The no negative equity guarantee ensures that the beneficiaries cannot be left with any debt over & above the valuation of the property. Therefore, should the equity release balance be higher then the sale of the property, then only this value can be retained by the equity release company.
This can be very reassuring from the beneficiaries point of view.
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Value of the property
There are certain factors that influence the decision of lenders. The size and value of the property are important factors that lenders consider when offering equity release loans. If your property is in a good and well-maintained condition, lenders are more to make an equity release offer in return.
However, there maybe instances when following valuation, certain conditions could be placed upon within the equity release offer document.
These would usually be classed as essential repairs & the following could be main examples: -
- Damp & timber issues
- Electrical sub-standards
- Roof
- Wall ties
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Repayment
The amount that equity release companies offer is repaid by selling the property after the borrower passes away or moves into long term care. The amount recovered after selling the property is used to repay the equity release debt including any interest that is built up. If the amount recovered is more than the value of property, a share of the amount is given to the relatives of the borrower in accordance with their Will.
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If you are above 55, retired and looking for a solution to generate income, equity release is certainly one of the best options to consider.
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For further information on issues regarding property valuations & whether equity release could be made available, please contact Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, No negative equity guarantee, valuation
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Wednesday, August 11th, 2010
Equity release is money you receive for your home without having to sell it. It is nothing but a value for your house which you receive in the form of tax free cash.
Equity release can be paid as one lump sum or on a more regular basis.
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Regular income
Cash which is received on a monthly basis is treated as regular income. This regular income can be used in a similar way in which you use your salary. This proves to be a beneficial option for retired people. They do not have to depend on anyone for their basic needs and can spend this extra income on leisure activities or by utilising a drawdown equity release scheme they can use it to provide additional payments in the future.
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Investment
The lump sum payment allows a person to use it as they choose. This money can be used for investment purposes of which the main one is in a further property. This could be to buy a caravan or a second property for rental or holiday purposes. More commonly it is being used to assist children to get on the housing ladder by way of gifting them the deposit.
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Financial security in old age
Equity release is a way to protect you financially in old age. A higher percentage of the value of your home is paid to older people. The equity release loan is paid only to the title owner of the property.
Tags: drawdown equity release, Home Income Plans, impaired life, income plans
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Wednesday, August 11th, 2010
Equity release schemes are means that allow you to get access to the equity that you have created in your home without any need for selling your property. It is a financial tool that is great for people over 55 years of age.
With the help of equity release schemes, individuals can use that money they have invested in their home while still remaining in it.
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Who can quality for an equity release scheme?
If your age is over 55 and you have your own property, you may be eligible to take part in one of the many different equity release schemes. As the legal and financial system changes, it would be a wise move to take professional advice before opting for an equity release scheme.
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How can equity release help you?
You may be looking for a way to earn extra money for your remaining life or you may want to financially help your kids or family members, go on a holiday, etc. In such situations, an equity release scheme could be the perfect solution for your problems.
Moreover, if you are looking for the best way to create a pension with annual payments while continuing to live in your property, an equity release scheme can also be an option. Irrespective of the reason, taking professional help can make the entire process smooth.
With many people already enjoying the benefits of equity release schemes, it is certainly the best way to generate income after your retirement. The loan that you take against your property will be paid off by selling your property after your death.
Tags: equity release, equity release schemes, Financial adviser, home reversion, income plans
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Tuesday, August 10th, 2010
An equity release scheme is one of the best solutions for elderly people who want to generate income after their retirement. The option of equity release allows homeowners to unlock the equity they have built up in their property over the years. The property that you possess is usually your most expensive asset.
Most people invest their hard-earned money in to their homes. At times when you face financial troubles, especially during your old age, equity release is the perfect solution to generate extra income from your property. This scheme is only available for those who are over age 55. Maybe someone who is in receipt of a pension and hence find it difficult to afford the luxury they used to enjoy previously.
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The increasing popularity of equity release
In the recent past, equity release schemes have gained immense popularity due to the many advantages they offer. One of the most important advantages of an equity release scheme is that it enables homeowners to reside in their home without making any repayments.
With an equity release scheme, the homeowner will receive a share of the current value of their property. After the homeowner passes away, the equity release company will recover the loan amount & interest on the eventual sale of the property.
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Most equity release companies will offer you with two different options to release money against your property. You can either opt for monthly payments or get a lump sum amount. If you feel both schemes can benefit you, then you can even get a combination of both. However, if you are unable to determine the best option for you, taking professional help is the best solution.
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To find a local Equity Release Supermarket adviser near to you click here or ring freephone 0800 783 9652.
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Tags: calculator, equity release, Equity Release Adviser
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Tuesday, August 10th, 2010
Are you thinking about how to manage finances during retirement period? If your answer is yes, then equity release is an ideal solution for you.
If your age is more than 55 years and you own a property, then equity release could unlock your money for your retirement.
Equity release schemes are designed in such a way that they allow the homeowners to get lump sum money or regular income against their home.
One of the best things about equity release schemes is that you can get the value of your home without leaving it.
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Moreover, equity release schemes offer tax-free cash which can be used in different ways such as:X
• You can buy a second home
• Buy a new car
• You can also pay off your outstanding debts
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Due to different needs, two different equity release schemes have been introduced in the market.
This includes:
Home reversion plan – This equity release scheme is calculated on the basis of life and age expectancy. The youngest age for a Home reversion plan is 65. Home reversion plans offer a better deal for much older homeowners who maybe feel that house prices won’t increase greatly in the future. For instance, people who have crossed age 70 can enjoy more benefits than people who are still in their 60’s.
Additionally, people who are in poor health would benefit greatly from a home reversion scheme. As life expectancy governs the amount of release quid pro quo.
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Lifetime mortgage scheme – Under this scheme, you can get a lump sum amount of money secured against your property. One of the best things about this scheme is that the money and interest is paid by selling the property when you die or move into a care home. There are no monthly payments to be made, hence it has no effect on your monthly budget.
If you have decided to opt for equity release schemes then hire an independent equity release adviser who will help you in getting the money against your property.
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Monday, August 9th, 2010
Obtaining money through your house that has capital value is known as equity release. The percentage of cash to be received depends on the age of the person. The older the person, the greater the percentage. A person aged 55 years or over qualifies for this scheme. The maximum release that is available at age 55 is 19% of the property value.
This amount can assist in securing a person in their old age. The key benefit of an equity release loan is that a person can still own their property while enjoying its value.
The two main types of equity release are:
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Lifetime mortgages
A lifetime mortgage is a scheme where you receive tax free cash by taking a secured loan on the property. The cash is paid usually by lump sum. However, there is also an option to take a regular income by the borrower. This loan is repaid to the lender after the person dies or moves into care by selling the mortgaged property. You can release 19% to 50% of your property’s current value, dependent upon age.
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Home Reversion schemes
With Home reversion schemes, the property owner needs to sell a part or all of the property to the reversion company. If the borrower wants, he/she can sell the whole property. The money is paid to the borrower dependent upon the percentage of the property sold. For example if the reversion company takes ownership of 50% of your property, then after your death they will still retain 50% of the sale proceeds.
Equity release is a beneficial scheme that makes proper use of your assets in retirement.
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To establish whether equity release is right for you please call on freephone 0800 783 9652 or visit the Equity Release Supermarket website at http://www.equityreleasesupermarket.co.uk
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