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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

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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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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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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.

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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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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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If yes, you could consider opting for an equity release scheme.

Equity release is a financial tool that releases equity from your property. It provides you with a lump sum against your home. Senior citizens often opt for equity release for additional money later in life.

The main purpose of opting for an equity release scheme is to raise money, either for lump sum purchases or for income. People may use the option of equity release for adding funds to their retirement or to help their family or children purchase a new home. The option of equity release can also be helpful to tackle issues with late life medical bills.

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When to opt for an equity release scheme

Typically, equity release is a way to raise capital when you have explored all other options as follows:

• Downsizing to a smaller property to raise funds
• Using any existing investments or savings to fund any shortfall
• Consider an interest only mortgage
• Claim any available social security benefits e.g. pension credit, council tax benefit etc
• Take on a lodger
• Ask friends & family for assistance

These options should always be considered first & discussed with your independent financial adviser before entering into equity release.

Once eliminate as inappropriate then equity release schemes can be looked into & advised accordingly.

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An equity release scheme offers homeowners a way to release some percentage of the value of their home.

If your age is over 55, you own a property and you are looking for a way to get funds to assist your financial problems, an equity release scheme may be the best solution for you.

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To discuss your options, please contact the Equity Release Supermarket team on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk

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These two forms of equity release schemes are specifically designed for older homeowners who need some extra money to supplement their pension or savings.

With the help of equity release schemes, you can unlock money from the value of your home or other property without moving. This financial product is perfect for older homeowners who have already paid off their mortgage or have only a small amount left.

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How do equity release schemes work?

If you own a property you can release some value of your property or home and get a lump sum amount of money. One of the best things about these schemes is that you can also get some of the money in the form of a regular income. After your death, the money which is repaid from the sale o the property sale. Primarily, the equity release lender is repaid first, with any remaining amount passing to your beneficiaries.

On the other hand, if you sell your home before you die then you can repay the money to the lender yourself. If you have decided to opt for an equity release plan then make sure that it also offers a no negative equity guarantee. This means that the debt amount must never exceed the value of your home. This feature will ensure that any outstanding debt is never passed onto your children or grandchildren.

It is always recommended to consult an equity release specialist company before opting for an equity release plan.

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Due to the varying requirements for finance in retirement, current equity release schemes have been devised accordingly. The home reversion scheme is just one of the preferred schemes taken by homeowners these days.

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Home reversion scheme

This equity release scheme is designed in such a way that it allows you to sell a part of, or the whole property for an amount of money. Once you opt for this scheme then you have the right to live in your property for the remaining years of your life. This is due to the inclusion of a lifetime tenancy agreement. Although the property partly or fully belongs to reversion company, you are still allowed to live in the property until you die.

The amount of release depends upon your age and value of the property. Additionally, if you have any health issues then an impaired life home reversion scheme is available. Upon receipt of a completed medical questionnaire the lender can increase the applicants age for the purposes of re-calculating the amount of the release. The reason being that if any health issues do exist they can affect the life expectancy of the client.

The result of this being that the home reversion scheme may not have as long to run. Therefore, the reversion company can afford to release a higher amount for the same fixed percentage the applicant was prepared to sell. Alternatively, if impaired life is acknowledged by the lender, then the client could opt to to take the same tax free lump sum, but for a lower percentage ofthe property value.

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How does the lender eventually get their money back?

If you want to sell 50% of the value of your property, then your age will decide the amount of cash you will receive. Accordingly, if you die after 20 years then the lender will still get a 50% share based on the final sale value of the property.

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With the help of equity release schemes, one can use the money invested in their home and not have to move out.

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Who can qualify for an equity release scheme?

If you are more than 55 years of age and you own a property which is your main residence, you can become eligible for equity release schemes. Due to the complexity of the products available & the implications on your beneficiaries & potential benefits, you should always discuss your specific situation with a professional financial consultant prior to opting for an equity release scheme.

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Why do people choose equity release schemes?

Different people may have different reasons to choose equity release schemes. People looking to earn extra money in their lives may choose to participate in equity release schemes. Elderly people looking for a tax-free means to access their money to help their children or relatives, can now also opt for these schemes. On the other hand, elderly people looking for a means to supplement their pension with additional payments while staying in their home can also opt for equity release schemes.

Equity release schemes can also provide elderly people with the extra money they need for their health care in their retirement years.

Regardless of the reason, when opting for equity release schemes, professional financial advisors can guide you through the entire process.

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