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Different Lifetime Mortgage Options Available With Equity Release

By Mark Gregory on April 28th, 2011

Are you looking to secure your life post retirement?

Do you want to lead a life free from tension and financial worries?

 

If the answer is yes, opting for an equity release scheme could be the right decision.

As different people have different financial requirements, recent equity release schemes have been designed and developed to cater to your needs. These schemes include home reversion schemes and lifetime mortgages. Roll-up lifetime mortgages are much preferred by many people these days as they enable you to retain 100% of the property value & are more flexible in the long run.

 

Features of lifetime mortgages

Lifetime mortgages are especially relevant for those homeowners who are entering retirement. With such a plan, retired homeowners can release equity from their property in the form of a secured loan on their property. The repayment of a loan under this plan takes place after the homeowner has moved into long-term care or after the last applicant has passed away.

 

Once either event has occured then the beneficiaries usually have 12 months in which to repay the debt to the equity release lender. This is most likely from the sale of the property. However, this can be repaid by the children taking ownership of the house & raising their own finance in which to repay the equity release company. For instance if the property was used for rental purposes than a buy-to-let mortgage could be applied for to cover the equity release debt.

 

After opting for a lifetime mortgage, homeowners can continue to live in their residence for the rest of their lives. This is also applicable even when the equity release balance exceeds the value of the property. This is where the no negative equity guarantee applies & provides protection for the heirs. Therefore, inheritants are given assurance that the no debt is incurred by them from the decision made by their parents.

As the equity released is completely tax free, applicants can use the money for any purpose they want. Due to all these benefits, more and more retired homeowners opt for equity release to secure their future.

 

Call 0800 678 5159 for further information or an equity release quote

 

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