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Equity Release – Some Facts You Must Know

By Mark Gregory on October 28th, 2010

Equity release is a scheme meant for senior citizens. There are still some misrepresentations on these schemes due to lack of customer knowledge & product awareness. However, there are now informative equity release website’s such as Equity Release Supermarket who provide information & interest rates on the equity release schemes available.

 

Equity release schemes were introduced to secure individuals financially after retirement. Here are the answers to some of the most commonly asked questions:

 

Who owns your property?

The key benefit of an equity release scheme is that you still own your property. You are still the decision maker for it.

 

Is there any tax charged?

No tax is charged on the money you receive via an equity release scheme. The tax might be charged on the investment of this money. For instance, if you invest equity release money in a deposit account for further income or receipt of interest, then tax is charged.

 

Criteria to qualify for equity release

Your property is surveyed for eligibility. The current minimum value for eligibility is £70,000. A property worth less than this amount cannot be mortgaged for equity release purposes. Coming to the eligibility of an individual, you need to be of at least 55 years of age to qualify for a lifetime mortgage scheme. A minimum age of 65 is required for a home reversion scheme.

An equity release scheme is one of the better financial tools meant for senior citizens. Every retired individual could potentially take advantage. You can opt for such a scheme even if you are financially secure. It can be used for investments or just to indulge in leisure activities. If you want to enjoy your retirement, consider equity release schemes & you can find the information you require by visiting the website of equity release supermarket.

 

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