Archive for September, 2010
Saturday, September 18th, 2010
Almost all people dream of living a peaceful and hassle free life after retirement. They hope for economic security and a lot of valuable time to spend with their family. Although the cost of living has increased, pensions remain much the same.
In order to tackle financial problems, many retired homeowners look for other means to generate funds. With house prices staedily rising again, unlocking the equity from one’s property is the best solution to generate income after retirement. Retired homeowners can opt for equity release schemes to boost their cash flow. Home reversion and lifetime mortgages are the two different types of equity release schemes one can opt for.
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How equity release schemes are helpful
Equity release schemes help homeowners to unlock the equity that they built in their property while still living in it. Homeowners can get the money in the form of monthly instalments, a tax free lump sum amount or a combination of both.
With lifetime mortgages, homeowners can enjoy residing in their property until they pass away or move into care. After the death of the homeowner, beneficiaries will sell the property to pay off the loan amount. If the value of the property rises, some amount will be given to those named in the will of the homeowner. Due to these advantages, equity release schemes are becoming highly popular among homeowners.
If you are retired, own a property and are over 55 years of age, you can opt for equity release schemes to generate additional income.
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For further information on equity release & the different equity release schemes available, please contact Mark Gregory on 0800 783 9652.
Tags: equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgages
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Thursday, September 16th, 2010
Equity release is a plan which allows the homeowner to release some amount of cash against the value of their home. If you are over 55 and own a home worth more than £60,000 then equity release is an ideal solution for you. Although you receive money against your home, there is no need to move & no monthly payments.
The amount of cash which you can release against your property depends on the age of the youngest person on the deeds and the current value of your property. To find out how much you can release, you can use the online calculator.
You can ascertain the maximum release possible by using the equity release calculator & clicking here.
One of the best things about equity release is that it offers tax-free money. This means that you can use all of this cash in whichever way you want.
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Due to different financial needs, two different formats of equity release schemes have been introduced.
• Lifetime mortgage schemes
• Home reversion plans
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The above mentioned schemes offer different features, so you can opt for the one which suits your requirements. Lifetime mortgages are further categorised into different types such as roll up mortgages and interest only mortgages. Roll up mortgages are preferred by most homeowners these days & account =for approx 90% of all equity release plans completed.
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Roll up lifetime mortgages
By opting for this equity release scheme, you can keep a lump sum and forget about any monthly the repayment. The best thing about this scheme is that the interest is compounded year on year and paid eventually by selling the property.
The process of releasing equity is complicated, so it is recommended to equity release expert, such as a member of the Equity Release dept. who will guide you in choosing a right option.
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To discuss equity release & its implications, please contact Mark Gregory on 0800 783 9652
Tags: equity release, Equity release calculator, lifetime mortgages, Roll up lifetime mortgage
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Thursday, September 16th, 2010
Equity release schemes are becoming a great way to release the cash benefits from the value of your home. You can enjoy the benefits of having built such equity, while still maintaining ownership of your property.
You have two ways to benefit from equity release schemes. The first method is called a lifetime mortgage which involves taking a secured loan on your property and the second type of equity release is the home reversion scheme. This involves selling of a portion of your property to get valuable funds.
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People who want to guarantee leaving a percentage of their property to their children or other beneficiaries will prefer the home reversion scheme.The reason for this is that having sold a percentage of the value of the house to the home reversion company, the homeowner will still retain the remaining fixed percentage in their name also. They are issued with a lifetime tenancy which means they have the right to remain at the property for the rest of their life, rent free. This percentage they own will continue until the house is eventually sold.
For example, if the homeowner sold 60% of the value of the property to the home reversion company, they themselves would retain the remaining 40%. Therefore, upon eventual sale of the property, the beneficiaries would sill receive 40% of the final sale value of the home, guaranteed. This way they can easily retain their most valuable assets. Other reasons for opting for the home reversion scheme is that if one has no beneficiaries & even no significant heirs to leave their inheritance to, may wish to sell 100% of the value of their property in order to take the maximum possible whilst they are still alive. This may seem excessive, but rather than leaving their estate to people who they feel should not benefit, they can enjoy the fruits of their working life & the resulting equity they have built.
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Features of equity release schemes
Staying in your home
One of the biggest advantages of equity release schemes is that you can stay in your own home while enjoying financial benefits from it. Selling your old property and moving to a new, unfamiliar area can be emotionally as well as physically trying. One may not want to separate from friends and other family members who might be staying close to them. You may still need that additional room to entertain family & friends & when the grandchildren stay over in that extra bedroom you have currently, that may not be there if you downsize.
There are also the costs involved in moving such as solicitors fees, removal costs, stamp duty & the emotional price of up-rooting from somewhere that you have spent the majority of your life bringing up your children & other family issues. Equity Release can help you maintain your independence & the right to remain in the family home.
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Live a life of luxury
People who take equity release schemes are able to fulfil their dreams & retire & relax. Some might go for holidays to foreign and exotic locations, while others may purchase a brand new car or carry out home improvements including redecoration of their home. This can be jobs that have been put of during their working lives for financial reasons, or even modifications to the property due to disability reasons. Also, upgrading the home with equity release including improvements such as new double glazing, loft & cavity wall insulation can assist on saving on your fuel bills. Therefore, some investment in the property can alleviate finances elsewhere thus paying dividends. For some people, it is simply pleasurable spending money on their family by way of gifting to the children now, rather than later and seeing them enjoy bringing up their grandchildren without the financial constraints that today’s society is imposing currently.
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Guaranteed returns
Almost all equity release schemes offer the benefit of having guarantees throughout your life. This can be the guaranteed interest rates for life on the lifetime mortgage scheme. There is also the no negative equity guarantee that the lifetime mortgage schemes also have , ensuring that any equity release scheme is adhering to Safe Home Income Plan (SHIP) regulations. This no negative equity guarantee ensures that the beneficiaries cannot ever incur any debt over & above the property value once the equity release scheme mortgage holders have died or moved into long term care.
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Before going ahead with getting an equity release scheme, you should seek professional and impartial advice from the Equity Release Supermarket experts and read all documents carefully before signing.
Contact the team now on freephone 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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Wednesday, September 15th, 2010
Equity release schemes offer you access to the equity that you have built up in your property which in many cases has escalated significantly since it was originally purchased many years ago.
You may have heard the saying that people in retirement understand the concept of ‘asset rich, but income poor’. This relates to the commonly seen scenario for many retirees during their time of leisure after working lives.
This equity tied up in the property can be released without the need for selling it. They are great financial tools for individuals over 55. With equity release schemes, you can get the money that you have invested in your property while remaining in it. The equity release companies will recover the loan amount once the house is sold after the homeowner(s) has passed away or gone into long term care.
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Who can qualify for an equity release scheme?
If you are over 55, not necessarily retired and own a property, you are most likely eligible for an equity release scheme. As there are changes in the financial and legal system from time to time, it is advisable to seek the professional services of an independent equity release asdviser such as Equity Release Supermarket who can help you determine the best scheme to meet your requirements.
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For what purpose can you use the money?
After opting for an equity release scheme, you can utilise the amount for any purpose you want. Many people during their old age look for tax-free means to access their equity to help their children or relatives purchase a new property. The advantage of this kind of a scheme is that it allows homeowners to stay in their property until the property is sold.
In the past decade, thousands of people in the UK have opted for equity release schemes to fulfil their needs after retirement. If you are retired and unable to cope with daily expenses on your pension, equity release is the perfect solution.
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If you feel one of the experienced Equity Release Supermarket advisers could be of assistance to your retirement needs, please contact them on 0800 783 9652. They are always on hand to take your enquiry & provide either face to face or telephone based advice to suit your requirements.
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Tags: equity release, equity release schemes, lifetime mortgage schemes, lifetime mortgages, pension shortfalls
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Tuesday, September 14th, 2010
Many individuals still are still taking financial issues into their retirement. We are all aware of the issues that have dogged the pensions industry over the last decade or two. With the decline in final salary schemes & corresponding members of such schemes, retirement that ensures a safe and constant source of income is a worrying concern.
To solve such pension shortfalls & the financial problems in retirement this causes, equity release schemes have been introduced.
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Some facts about equity release schemes
Before opting for equity release, you need to know some important facts about it.
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Payments received
You are paid by the equity release lender for the property you mortgage. This money can be paid as a lump-sum amount or as a monthly income. The type of payment to be received depends on the applicants choice. Monthly payments are the constant income that works exactly like a monthly salary. A lump sum payment is when you can retain the complete value of your property at one time. This type of payment can help you to invest in another property, maybe a holiday home for yourself or a deposit on a new property for your children. People who use an equity release scheme as an additional form of income choose to receive the payment as a regular lump-sum amount.
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Repayment of loans
Roll-up equity release schemes have a unique benefit. They allows you to maintain the complete ownership of your property for your lifetime. You can enjoy complete rights over your property even after mortgaging it without worrying about the repayment at all. Interest is added annually to the actual amount till the loan is repaid.
On the other hand, a home reversion scheme allows you to sell your property and then receive the money. In this case, you do not have to pay anything in return later on. The loan should be paid within a period of 6-12 months.
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Should you require further advice or quotations on lifetime mortgage or home reversion schemes please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, equity release schemes, Home Income Plans, home reversion, home reversion schemes
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Monday, September 13th, 2010
Are you facing financial problems? If your answer is yes, then equity release schemes may be the perfect option for you. These schemes are specially planned for elderly people to release some cash against their property’s value. There are various equity release schemes offered by financial institutions.
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Two of the most popular equity release schemes are lifetime mortgages and home reversion plans. By opting for home reversion plans, you can sell all or a part of your property to the equity release company.
On the other hand, lifetime mortgages are categorised in three different types.
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• Roll-up lifetime mortgages
• Fixed repayment mortgages
• Interest-only plan
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Of the above mentioned schemes, the roll-up lifetime mortgage scheme is preferred by many homeowners these days.
However, here we feature one of the less common equity release plans: -
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Features of a fixed repayment mortgage
Instead of interest, you have to pay a fixed amount of money which is higher than the original borrowed money. The repayment money is agreed in advanced with the lender. You do not have to worry about repayment money because it is done when your home is sold.
To choose an equity release scheme which suits your requirements, you should always employ the services of an independent equity release advisor such as the team at Equity Release Supermarket, whom have over 30 years equity release experience.
They will guide you. In essence they will ascertain your current situation, gather details of your finances & dicuss your options.
These will include looking at any alternatives prior to explaining & advising on equity release: -
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- Downsizing
- Interest only mortgage
- Using any savings or investments
- Asking relatives for financial assistance
- Seeking any entitlement to state benefits
- Taking on a lodger
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Once these avenues have been explored the adviser will make their recommendation. This will involve running through a specific Key Facts Illustration (quote) & explaining the pro’s & con’s of the particular product.
Should this be to the satisfaction of the client then the relevant paperwork can be completed by filling out the required documents.
Most equity release schemes offer three payment options. You can get a lump sum or regular monthly income. You can also opt for a combination of both these methods.
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For additional information on the alternatives to equity release contact your local Equity release supermarket financial adviser on 0800 783 9652 or email admin@equityreleasesupermarket.co.uk
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Tags: equity release, equity release schemes, Fixed lifetime mortgage, lifetime mortgage schemes, lifetime mortgages, Roll up lifetime mortgage
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Saturday, September 11th, 2010
Over the last few years, there has been a rise in the number of people opting for equity release. The main reason for this is that these schemes provide a financial boost for those who have retired. This income is usually paid by either a tax free lump sum or regular income & can be used for any purpose. But while equity release schemes can be beneficial, there are a few things that they can affect.
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The can have an impact on benefits – These benefits are state income such as pension savings credit, council tax benefits and pension credit which can all be affected by equity release schemes. In fact, drawing too much equity can result in a reduction of benefits. However, you can avoid this by having a certified equity release adviser such as Equity Release Supermarket run through the calculations regarding specific details.
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Compounded interest – Starting an equity release scheme when you are 55 and living a long fruitful life could result in lack of equity in the property later on. This is because interest is added to the amount, which unlike a conventional mortgage is paid off. Therefore, with the interest rolling up will lead to an ever increasing repayment on eventual sale of the property. The good news is that this can be avoided through the No Negative Equity guarantee which must be prevalent in order for the scheme to be a member of the trade body - Safe Home Income Plans (SHIP). They insist that any equity release scheme provider MUST ensure the amount owed is never more than the home value.
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A large lump sum – Most people prefer to take a large lump sum at outset of the plan. But you should be aware that the larger the initial amount, the more interest that will accrue in the long run. Fortunately, this can also be avoided if you consider a drawdown facility in the equity release schemes. This will enable you to take the equity release in smaller amounts as & when required. The benefit of this is that only as much as is required for the first 12 months need be taken. Consequently, less interest will be charged leaving a greater amount of equity for the future. This would not only benefit the plan holders as they will have more equity left in the property to potentially withdraw in the future, but also a greater inheritance for the beneficiaries.
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Following these three points can make equity release schemes much better for homeowners who are short of income or have lump sum capital requirements.
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If you have any questions on how equity release can affect means tested benefits or how drawdown equity release can benefit you please contact Mark on 0800 783 9652.
Alternatively, please email mark@equityreleasesupermarket.co.uk.
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Tags: drawdown equity release, equity release, equity release schemes, No negative equity guarantee, Roll up lifetime mortgage, SHIP
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Friday, September 10th, 2010
Equity release schemes are specially designed for homeowners who are above 55 years and own at least one home which must be their main residence.
If you are retired and facing financial problems then equity release schemes could be an answer to your situation. By opting for an equity release plan, you can gain a lump sum amount of money against your property.
These lifetime mortgage plans operate similar to a conventional mortgage. You borrow money secured against your property, however the main difference is that you have no monthly payments. Therefore, the interest that is not repaid is instead added to the balance on a yearly basis & compounds for the rest of the equity release term. This would be on the death of the last survivor or having to move into care.
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The Market Today
Due to varying requirements, several equity release schemes are currently available in the market. These include lifetime mortgages and home reversion schemes. Lifetime mortgages are further divided into several categories such as:
- Roll up lifetime mortgages
- Fixed lifetime mortgages
- Interest only lifetime mortgages
- Drawdown lifetime mortgages
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What benefits are offered by fixed lifetime mortgages?
Unlike other equity release schemes, fixed lifetime mortgages offer a lump sum of money or regular income without any interest. Under this scheme, a pre-fixed amount has to be paid whenever your property is sold. Once you have opted for this scheme then you can stay in your home for the rest of your life. It also offers no negative equity guarantee to the applicants.
One of the best things about this scheme is that you do not have to sell any ownership which can benefit you or your family at the time of selling the home. This means that you can leave some amount of money for your beneficiaries. With the help of the remaining value in the property, you can also arrange a loan in the future.
If you cannot deal with the complications involved in equity release schemes then request th services of an independent financial consultant such as Equity Release Supermarket.
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For advice or further information on the right scheme for you please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, lifetime mortgage schemes, lifetime mortgages
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Tuesday, September 7th, 2010
Equity release is different form of finance to the usual bank loans and mortgages. The main reason for this is because NO monthly payments are required & also as it provides money against the value of your home with the allowance of you continuing live in it. If you are a homeowner and over 55, then equity release is an ideal option for you. With the help of equity release schemes, you can financially secure your retirement.
By opting for equity release, you can potentially receive a lump sum or regular income. To qualify for equity release, the value of your home must be over £70,000 & located in the United Kingdom. The countries within the UK vary between the equity release companies. However, they will all offer equity release in England & Wales, whilst some will only lend in Scotland & Northern Ireland. Again, some will offer equity release schemes on the Isle of Wight & only some on the Isle of Man, therefore to ascertain availability please ring freephone 0800 783 9652.
Due to different requirements, equity release schemes have been introduced onto the market. A home reversion plan is one the 2nd most popular scheme and is offered currently by four financial institutions within SHIP.
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Home reversion plans
Under a home reversion plan, homeowners can release money against the value of their property without worrying about monthly repayments. By opting for home reversion plans, you can sell a part or all of your property. You (& any partner) need to be a minimum age of 65. Better terms for the home reversion schemes are obtained once you have both surpassed age 70.
Even after selling part of the property, you can continue living there but the legal owner will be yourself & the financial institution. If you decide to sell 100% of the property value then the reversion company will have sole ownertship of the property, leaving no inheritance for any beneficiaries.
Different applicants will be eligible to release different amounts of money against their home. One of the major factors which affects the equity is the age of the homeowners. Also, the value of the property plays an important role.It is therefore a conbination of these factors that govern the amount you can release. Another important influence is health as there are now equity release schemes that will consider impaired life applications.
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Other than home reversion plans, you can also opt for lifetime mortgages or home income plans to release money against your property. Contact an independent equity release specialist such as Equity Release Supermarket who with their experience will guide you in choosing an appropriate equity release scheme.
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To obtain the services of one of the Equity Release Supermarket team email admin@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, impaired life, income plans, lifetime mortgages
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Monday, September 6th, 2010
Equity release is a scheme to secure senior citizens. It is also offered to financially secure and stable citizens to enjoy their old age. In such cases, people do opt for this scheme but do not know how to use this money. Here are some ideas to put this money to its best use:
Improve or buy new home
You can use this money for home improvements. There are people who spend their complete life to earn money just to improve their living conditions. When you get this money as an extra income why not invest it in fulfilling your lifelong dream? You can undertake a scheme that will pay lump sum amount as a value. This money can hence be used for improving your living style. People who do not want to buy a new house can go for monthly payments. This will help you to add to your home improvements.
Enjoy your retirement
Live your period of retirement to its fullest. Engage your money in leisure activities. If leisure activities do not sound interesting then you can pursue the dreams you had no time for earlier. For instance, if you have always wanted to spend your life with music then you can indulge in music by investing in musical instruments. You can further add to your income by starting some music classes. This can be the best way to utilise equity release money as it will extend the security it offers.
Equity release is not only for the needy ones. It is a way to live the life you always dreamt of.
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