Archive for July, 2010
Thursday, July 29th, 2010
Gone are the days when you needed to sell your property to unlock the equity in it.
Equity release schemes now give you an opportunity to stay in your home while you can still financially benefit from it. You can utilise the value of your home as a means to receive cash. This can be in one lump sum payment, lump sum & drawdown payments or in the form of regular monthly instalments.
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This new income source can be used in many different ways and is becoming quite popular among people of retirement age. The increasing costs of everyday living expenses puts financial pressure on particularly the retired population.
A lack of finance in retirement can to prevent us from living comfortably on a daily basis. This is when equity release schemes can fulfil their potential in offering homeowners the perfect option to enhance their lifestyles & enjoy life.
You may want to carry out home improvements, lighten some of your financial burden or just spend some more time fulfilling leisure pursuits such as holiday breaks or even worldwide cruises. Equity release schemes enable you to live out all your dreams. The money you get from the equity release scheme can be spent in the way you want. Obviously, this is where independent equity release advice is important.
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People often want to release the maximum possible from an equity release scheme & invest the proceeds. However this invariably is not the best option.
With the lowest equity release interest rates around 6.5%, by taking a large release from the property in the current econmic climate, it would be impossible (unless excessive risk was taken) that one could obtain the same 6.5% return.
Therefore, it is not good advice to take a large tax free lump sum from an equity release scheme just for investment purposes.
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A more cost effective way of achieving this goal of increasing your income could be by a drawdown equity release scheme. This scheme would enable an overall cash facility to be provided by the lender. From this facility, an initial tax free lump sum can be withdrawn, leaving the unused facility with the equity release lender that can be drawdown over future years.
The advantage of this method is that interest is only charged on the money withdrawn; not on the remaining funds in reserve. Interest is only charged on this as & when additional funds are taken.
This reserve facility is therefore the solution to providing the income required. The funds can be withdrawn as ad hoc payments in minimum amounts of between £2000-£5000 depending on the equity release lender.
Therefore, depending on the annual income required, this amount can be withdrawn from the equity release drawdown facility meeting the income objective.
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Considerations while opting for equity release scheme
While planning to opt for an equity release loan, there are few important things you need to consider. The lender, via the legal process will first check that all your mortgage & secured loan balances are completely repaid. They will also check whether you are the owner of the property by checking the land registry records.
Moreover, a valuation of your property will also be conducted by an independent local surveyor. Your age is also a determining factor on how much equity you can obtain.
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If you want to live a stress free life after retirement, choosing an equity release scheme can be an excellent solution.
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Contact Mark on 0800 783 9652 to discuss your income options further or visit http://www.equityreleasesupermarket.co.uk
Tags: drawdown equity release, equity release, equity release schemes, income, lifetime mortgages
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Wednesday, July 28th, 2010
If you want to secure your retirement life financially then equity release should be a major consideration.
The important feature of today’s equity release schemes is that they allow you to unlock money against the value of your property without you having to move.
By opting for an equity release plan, you can get a tax free cash lump sum or you can select the regular income option. Your independent equity release adviser will guide you as to the most suitable equity release plan based on your individual requirements.
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Today, many homeowners who are above 55 years of age prefer to use an equity release scheme to boost their income. To qualify for equity release, you have to own a home with a value of more than £70,000. You should have little or no mortgage in order to qualify for these equity release schemes.
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The many features of equity release schemes
Equity release schemes are basically divided into two main types such as:
• Lifetime mortgages
• Home reversion plans
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Both the above mentioned equity release schemes allow you to get cash against the value of your home or property without you having to leave it. During the life of the equity release scheme there are no monthly payments to be made. Instead, the interest being charged is added to balance of the equity release on a yearly basis. It will therefore compound interest over the years at a fixed rate which remains the same for life.
The repayment is eventually made by selling your home when you die or move to long term care. Equity release schemes are perfect for homeowners who do not have any family as there is no as much reliance on how much equity remains at the end of the day.
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Apart from above mentioned benefits, equity release schemes also offer tax-free cash which can be used to spend as you wish. There are no restrictions on how you decide to spend the money.
This means that you can buy a car, a second home, new suite & many other home improvements. One of the most popular reasons for equity release currently is to consolidate outstanding debts which has the effect of reducing monthly outgoings & thereby increasing disposable income in retirement. Click here so see examples of how Equity Release Supermarket clients have spent their equity release funds.
However advice should always be obtained in order to establish the best way of fulfilling your requirements. There are many ways of releasing equity from your property & this is where independent financial advice from an Equity Release Supermarket adviser can save you thousands of pounds by having the choice from the full range equity release schemes.
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Call the Equity Release Supermarket team today on 0800 783 9652 or visit the market leading equity release website at http://www.equityreleasesupermarket.co.uk
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Tags: equity release, equity release schemes, Home Income Plans, Home Income Schemes, home reversion, home reversion schemes, Independent equity release advice
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Wednesday, July 28th, 2010
Would you like to have a secure and enjoyable retirement?
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If your answer is yes, then an increasingly effective option for the over 55’s is using equity release schemes.
We all have different financial needs & the more recently developed equity release schemes are designed to meet these requirements. These schemes are incorporated within the lifetime mortgage schemes and reversion plan product range.
From this selection the roll-up lifetime mortgage scheme is preferred by the majority of people.
A lifetime mortgage scheme is specially designed for homeowners who are entering retirement and want to release equity from their home as a secured loan. Under this equity release scheme, the repayment takes place on death or the client moving into long term acre.
Once you have opted for this scheme, you can continue living in the same residence for the rest of your life, even if the equity release balance become more than the value of the house. This is due to the inclusion, at no extra cost, of the no negative equity guarantee. This ensures that no debt, over & above the property value can be passed onto the beneficiaries.
Reassurance is therefore given to the children that they cannot incur debt by the actions of their parents.
This rule is a condition of all lenders that are members of the equity release trade body - SHIP (Safe Home Income Plans) who provide consumer protection in the equity release marketplace.
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In Summary
A lifetime mortgage scheme can divided into the following types.
- Roll-up lifetime mortgage
- Fixed payment lifetime mortgage
- Interest-only lifetime mortgage
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Roll-up lifetime mortgage - Under this kind of scheme, you do not have to pay any interest or repayments for rest of your life. The interests will be compunded yearly onto your actual loan amount and it will be paid when the home is sold on death or moving into long term care.
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Fixed repayment lifetime mortgage - In this scheme, there is no interest added to the actual amount but you have to payback a fixed amount when your home is sold. The scheme remains the same even if you sell your home after six months or 25 years, hence it is always important you receive independent equity release advice. This equity release is currently offered by Just Retirement.
The maximum charge that can be secured is 75% of the property value. The value of the overall facility is determined by several factors including your ge, sex, property value & your health & lifestyle situation. Click here to request further details on this unique equity release scheme.
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Interest-only lifetime mortgage - People who do not want the build up & compounding of interest can choose to make monthly repayments of interest only. Using this method, no interest is added onto your main loan as any interest generated is repaid back on a monthly basis.
Before choosing a type of lifetime mortgage, you must consider your post-retirement income and what your needs will be.
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To discuss any of the above issues please contact Mark Gregory on 0800 783 9652 or visit the Equity Release Supermarket website at http://www.equityreleasesupermarket.co.uk
Tags: Add new tag, equity release, equity release schemes, Fixed lifetime mortgage, interest only equity release, interest only mortgage, Just Retirement, lifetime mortgages, No negative equity guarantee, Roll up lifetime mortgage
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Sunday, July 25th, 2010
Equity release schemes are especially designed for older homeowners. These schemes offer a lump sum amount of money or a regular income against the value of your home. One of the best things about these schemes is that they allow you to live in your home for the rest of your life.
Another important feature about equity release schemes is that they offer a tax-free amount of money by unlocking the equity in your home. This means that you can spend the cash in any way you want without an income tax liability.
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How much money you can release against your home?
The lump sum amount of money varies from a minimum release of £10,000. The maximum release is determined by two factors: -
- Age of the youngest homeowner
- Valuation & type of property
If you want to know how much can you release as you can see the important factors are your age, house value and outstanding debt. Nowadays, most people use an online equity release calculator to know the amount they can release.
Click here to calculate your maximum release.
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Nevertheless, it is not always advisable to apply & release the maximum equity release possible.
In every equity release case, advice must be provided by a qualified equity release adviser such as Equity Release Supermarket. The reason for this is that equity release schemes are regulated by the Financial Services Authority & most lenders who offer such schemes are also members of SHIP (Safe Home Income Plans). These levels of protection are essential in guaranteeing quality advice to people over 55 years of age.
Equity Release Supermarket advisers would only recommend you take an initial amount that would be required initially for the first 12 months from application. This is to reduce the impact of the roll-up effect of the equity release scheme over the longer term. By taking the maximum release from outset & having no plans for its expenditure would only leave the excess funds languishing in a savings account. With today’s interest rates this would not be financially savvy as the rate on the equity release scheme would be 3%+ higher than that of the savings account!
A more cost effective way of releasing equity in these circumstances would be by a drawdown equity release scheme. Here a cash reserve facility is provided by the lender. From this, you can take an initial release depending on your first 12 months expenditures. The remaining reserve funds can then be withdrawn as & when demand is required.
By taking this equity release route would mean that less interest is paid as you are drawing down a smaller amount & then ad hoc smaller payments over the years.
This is much better financially for beneficiaries also as there is also potentially a lower balance thus resulting in a greater inheritance for them in the future.
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If you have decided to opt for an equity release scheme, you must consult an advisor who will help you fill in the documents. There are some factors which need to be considered before releasing the cash against the property.
These include:
- The homeowner must be over 55 years of age
- There should be little or no outstanding mortgage
- The property should be worth at least £70,000
Subject to this criteria being met then the next stages of the application process can be achieved & your equity release adviser will explain the forthcoming stages to complete the whole process.
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If you need assistance with equity release calculations, please contact Mark on 0800 783 9652 or visit the Equity Release Supermarket website by clicking here
Tags: drawdown equity release, equity release, equity release schemes, maximum release
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Friday, July 23rd, 2010
Equity release is one of the ways to release money from your property or home without having to leave it. According to equity release schemes, you can get the amount which is the difference between your property’s value and outstanding debt. Today, many people are opting for equity release schemes to enjoy their retired life.
If you are interested in equity release schemes then hire a consultant who will help you in getting the money easily. Homeowners who are more than 55 years and have only a little debt are eligible to opt for these programs. One of the best things about equity release is that no taxes are charged on the funds.
Due to different requirements, various kinds of equity release schemes have been introduced in the market. Three main types of equity release schemes are:
- Lifetime mortgage
- Drawdown lifetime mortgage
- Home reversion plan
Lifetime mortgage - By opting for this scheme, you can take a lump sum amount of money from the value of the property or instead opt for it to be delivered as a monthly payment to act is regular income.
Drawdown lifetime mortgage - The only difference between this scheme and lifetime mortgage is that it allows you to release cash whenever you want. This flexibility reduces the interest by a great extent.
Home reversion plan - Under this scheme, you can sell a part or whole property against tax free lump sum amount of cash. This scheme allows you to live in your home for rest of your life.
After opting for any one of the equity release schemes, you can spend the cash to improve your retirement life.
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Friday, July 23rd, 2010
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.
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Thursday, July 22nd, 2010
Are you over 50 and retired? Are you looking for a way to generate income after your retirement? If your answer is yes, opting for an equity release plan can be a good solution. Equity release advice from a reliable source can be helpful, especially for those homeowners who seek to access the value that have locked into their home.
Life after retirement should be enjoyable. And equity release is an option that individuals can use for different purposes including:
• Holidays
• Purchasing a car
• Home improvements
If you are looking at an equity release scheme, seeking the right professional advice is important. Taking professional help can help you to get the best deal.
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Why seek professional advice?
Equity realise schemes are of two different types, namely the home reversion plan and the lifetime mortgage. Selecting an appropriate arrangement to suit your needs is very important. With the right professional equity release advice, you will have a deeper understanding about the obligations and commitments you agree to.
As the value of your assets will be reduced with equity release, there will be a decrease in the inheritance your family will get. Moreover, as there are certain criterions you need to fulfil as part of the equity release scheme, professionals will help you determine whether you are eligible for the scheme or not.
If you are serious about equity release and want to get the best deal, make sure that you seek professional advice.
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With over 30 years combined equity release experience, Equity Release Supermarket advisers have the knowledge & experience to provide quality, independent advice.
For further advice call 0800 783 9652 today.
Tags: Add new tag, equity release, equity release schemes, Financial adviser, home reversion, home reversion schemes, lifetime mortgages, qualified adviser
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Thursday, July 22nd, 2010
If your in retirement & facing financial difficulties then equity release can be one of the solutions to resolve your problems. These schemes provide additional money that can improve your life.
Equity release schemes are specially designed for homeowners who are over 55 years of age and have little or no mortgage remaining on their property. By opting for equity release schemes, you can release part or all of the value of your property and enjoy your retirement life.
Before applying for equity release plans, it is important to know how much money you can release against your property. The cash or income depends on factors such as value of the property and age of the applicants.
By opting for equity release schemes, you can enjoy several benefits such as:
- Increase your income
- Pay off outstanding debts or mortgages
- Pay for home improvements
- Buy a new vehicle
- You can also buy a second home
If you have decided to apply for equity release schemes then ensure you obtain the services of an independent financial adviser who will provide assistance in fulfilling your objectives.
Equity release plans are categorised into two main types - Lifetime Mortgages and Home Reversion Schemes.
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Lifetime Mortgages – This kind of equity release scheme allows the homeowners to retain ownership of their homes and release the equity tied up within it. One of the new features about these schemes is that you can take the cash in installments, rather than all in one lump sum. This type of lifetime mortgage is called a drawdown equity release scheme.
By taking the cash in stages rather than all upfront will result in less interest being charged. This is due to the fact that you are only charged interest on the initial & subsequent amounts as you take them. This will be more beneficial for your children as less interest is charged & should mean a greater inheritance for them. Additionally, by paying less interest will mean a potentially lower balance, resulting in greater equity available for use in the long run.
This is opposed to taking the equity release all in one lump sum whereby you will be charged interest on the full amount from day one. This means the compounding effect of the roll-up of interest will mean a higher balance in the future & less equity eventually available.
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Reversion schemes – By opting for this scheme, you (the homeowner) can sell a proportion of your home to the home reversion company in return for a tax free cash lump sum. Again some schemes will alllow you to take the cash in installments or more commonly by a single lump sum.
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From the above mentioned options, you can choose the one which suits your requirements. It is recommended to gain advice from equity release specialists such as Equity Release Supermarket prior to making any major decisions.
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Saturday, July 17th, 2010
Equity release is a method of acquiring a stable income source from the capital value of your home while you still live in it. This type of loan is usually paid to the provider after the homeowner passes away or moves into long term care. Equity release is a perfect option for people above 55 years of age, who have locked their assets into their property and need to use those funds during their retirement.
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Some features and facets of equity release
Equity release can be of two different types - lifetime mortgage and home reversion.
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Lifetime mortgages
This type of loan is generally used to create a retirement fund for the borrower to spend on enhancing retirement lifestyle. The money is usually paid as a lump sum amount.
Interest is added to the capital initially borrowed during the loan term. This amount is paid when the owner moves to a retirement home or sold off after the borrower passes away.
The debtor retains 100% ownership of the home together with other responsibilities and costs of maintaining the property. However, the only negative aspect of a lifetime mortgage is that the accumulated capital and interest compounds yearly, thus potentially reducing the inheritance that will be passed onto the beneficiaries. Nevertheless, with property values hopefully rising over the years, this roll-up of interest can offset to some degree the interest accumulation on equity release schemes.
The final outcome of the equity release scheme is that the lender will require eventual repayment of the scheme from the sale proceeds. However, after this event the executor of the estate will have between 6-12 months in which to finalise this repayment. This should provide enough time for a adequate sale price to be achieved for the estate & hopefully provide a surplus capital amount over & above the equity release balance.
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Home reversion plans
With this option, the homeowner sells the whole or a fraction of the property to a reversion company. The reversion company offers a tax free capital sum or a regular income to the borrower,. Moreover, borrowers can continue to stay in the home till their death even if they do not own it any more. They are provided with a lifetime tenancy agreement which allows them to remain in situ until they either die or move into long term care.
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To discuss the advantages & disadvantages of lifetime mortgage or home reversion schemes please contact Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk.
Alternatively, visit our website at http://www.equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages
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Tuesday, July 13th, 2010
Equity release schemes are becoming an intrinsic part of retirement solutions in the UK for people over 55 years of age. It is a financial product that releases tax free cash from an individual’s property.
However, the amount released depends upon the age of the applicant and the value of the property. The older you are, the more that can be released from the property. Likewise the greater the property value the higher the amount that can be raised from the property.
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Another factor that can affect the amount that can be released via equity release is one’s current health situation. With some equity release schemes if have poor health then the lender can class this as an ‘impaired life’ application & thereby offer potentially better rates. This can result in a higher percentage of the property value & consequently a larger lump sum for their age.
Some crucial advantages of the equity release schemes:
• No need to make any monthly payments
• You can continue living in your property for the rest of your life
• The debt is only repaid when you sell the property
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What you can do with an equity release scheme:
Home reversion
With a home reversion, a financial company purchases a share of your home. When your home is sold, the company takes its profits. The reversion company can purchase anywhere upto 100% of the property value. You then receive a lifetime tenancy, rent free for the rest of your life.
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Home income plan
With a home income plan, the equity release company releases a tax free lump sum from your home, which then can use to provide a regular income by purchasing an annuity. This income is then paid for the rest of your life.
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Lifetime mortgages and interest-only mortgages are other alternatives that should be considered when making a decision on whether an equity release schemes is right for you.
Depending on your personal circumstances and the way you wish to live out the remainder of your retirement will help determine which equity release scheme is right for your requirements.
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For more information on how equity release can help you call 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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