August 13th, 2010
There is no doubt historically, that buying property long term has been a profitable investment.
This phenomenon is now becoming of great assistance to people nearing retirement and needing an additional source of income to help live comfortably. Older homeowners now have the option to free up money from their home to gain a steady income. This can be done though equity release schemes which enable homeowners to release accumulated equity in their property.
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Why would people want equity release?
The main reason to opt for this process is to free up money in a property. This money can be used to accomplish a number of purposes. While some homeowners prefer to use the money on daily expenses to make their lives better, others use it for taking holidays or to buy personal items they want or need. Regardless of the need, equity release can help achieve this quickly and easily.
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Is it an ideal option?
Equity release can be an ideal way for retired people to get a certain percentage of income from their properties. However, the convenience of this option differs from person to person. While some people prefer to get regular payments from their homes without moving out, there are others who would want use their property to get a large tax free lump sum.
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Do I need legal advice?
This is one of the most common questions people ask themselves when asking about equity release. Although it sounds like a fairly simple process, it is best to have a professional overseeing the process. This will ensure the scheme is suitable and beneficial for you. One of the aspects the solictor must undertake to comfirm he/she is satisfied the client understands the contract they are entering into, is the signing of the SHIP certificate.
This confirms the solicitor has discussed the equity release scheme with the client, & is happy, that they are happy, with the process & legal implications of taking out equity release form the property.
Equity Release Supermarket can recommend a solicitor who is a member of ERSA. This is an alliance formed between a group of established law firms &specialise within the field of equity release. These solicitors aim to promote the importance of specialist legal advice within the equity release marketplace.
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To find a solicitor who can act on your behalf contact the Equity Release Supermarket team on 0800 783 9652.
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Tags: equity release, equity release schemes, equity release solicitor, ERSA, SHIP
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August 11th, 2010
Equity release is money you receive for your home without having to sell it. It is nothing but a value for your house which you receive in the form of tax free cash.
Equity release can be paid as one lump sum or on a more regular basis.
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Regular income
Cash which is received on a monthly basis is treated as regular income. This regular income can be used in a similar way in which you use your salary. This proves to be a beneficial option for retired people. They do not have to depend on anyone for their basic needs and can spend this extra income on leisure activities or by utilising a drawdown equity release scheme they can use it to provide additional payments in the future.
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Investment
The lump sum payment allows a person to use it as they choose. This money can be used for investment purposes of which the main one is in a further property. This could be to buy a caravan or a second property for rental or holiday purposes. More commonly it is being used to assist children to get on the housing ladder by way of gifting them the deposit.
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Financial security in old age
Equity release is a way to protect you financially in old age. A higher percentage of the value of your home is paid to older people. The equity release loan is paid only to the title owner of the property.
Tags: drawdown equity release, Home Income Plans, impaired life, income plans
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August 11th, 2010
Equity release schemes are means that allow you to get access to the equity that you have created in your home without any need for selling your property. It is a financial tool that is great for people over 55 years of age.
With the help of equity release schemes, individuals can use that money they have invested in their home while still remaining in it.
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Who can quality for an equity release scheme?
If your age is over 55 and you have your own property, you may be eligible to take part in one of the many different equity release schemes. As the legal and financial system changes, it would be a wise move to take professional advice before opting for an equity release scheme.
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How can equity release help you?
You may be looking for a way to earn extra money for your remaining life or you may want to financially help your kids or family members, go on a holiday, etc. In such situations, an equity release scheme could be the perfect solution for your problems.
Moreover, if you are looking for the best way to create a pension with annual payments while continuing to live in your property, an equity release scheme can also be an option. Irrespective of the reason, taking professional help can make the entire process smooth.
With many people already enjoying the benefits of equity release schemes, it is certainly the best way to generate income after your retirement. The loan that you take against your property will be paid off by selling your property after your death.
Tags: equity release, equity release schemes, Financial adviser, home reversion, income plans
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August 10th, 2010
An equity release scheme is one of the best solutions for elderly people who want to generate income after their retirement. The option of equity release allows homeowners to unlock the equity they have built up in their property over the years. The property that you possess is usually your most expensive asset.
Most people invest their hard-earned money in to their homes. At times when you face financial troubles, especially during your old age, equity release is the perfect solution to generate extra income from your property. This scheme is only available for those who are over age 55. Maybe someone who is in receipt of a pension and hence find it difficult to afford the luxury they used to enjoy previously.
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The increasing popularity of equity release
In the recent past, equity release schemes have gained immense popularity due to the many advantages they offer. One of the most important advantages of an equity release scheme is that it enables homeowners to reside in their home without making any repayments.
With an equity release scheme, the homeowner will receive a share of the current value of their property. After the homeowner passes away, the equity release company will recover the loan amount & interest on the eventual sale of the property.
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Most equity release companies will offer you with two different options to release money against your property. You can either opt for monthly payments or get a lump sum amount. If you feel both schemes can benefit you, then you can even get a combination of both. However, if you are unable to determine the best option for you, taking professional help is the best solution.
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To find a local Equity Release Supermarket adviser near to you click here or ring freephone 0800 783 9652.
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Tags: calculator, equity release, Equity Release Adviser
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August 10th, 2010
Are you thinking about how to manage finances during retirement period? If your answer is yes, then equity release is an ideal solution for you.
If your age is more than 55 years and you own a property, then equity release could unlock your money for your retirement.
Equity release schemes are designed in such a way that they allow the homeowners to get lump sum money or regular income against their home.
One of the best things about equity release schemes is that you can get the value of your home without leaving it.
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Moreover, equity release schemes offer tax-free cash which can be used in different ways such as:X
• You can buy a second home
• Buy a new car
• You can also pay off your outstanding debts
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Due to different needs, two different equity release schemes have been introduced in the market.
This includes:
Home reversion plan – This equity release scheme is calculated on the basis of life and age expectancy. The youngest age for a Home reversion plan is 65. Home reversion plans offer a better deal for much older homeowners who maybe feel that house prices won’t increase greatly in the future. For instance, people who have crossed age 70 can enjoy more benefits than people who are still in their 60’s.
Additionally, people who are in poor health would benefit greatly from a home reversion scheme. As life expectancy governs the amount of release quid pro quo.
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Lifetime mortgage scheme – Under this scheme, you can get a lump sum amount of money secured against your property. One of the best things about this scheme is that the money and interest is paid by selling the property when you die or move into a care home. There are no monthly payments to be made, hence it has no effect on your monthly budget.
If you have decided to opt for equity release schemes then hire an independent equity release adviser who will help you in getting the money against your property.
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August 9th, 2010
Obtaining money through your house that has capital value is known as equity release. The percentage of cash to be received depends on the age of the person. The older the person, the greater the percentage. A person aged 55 years or over qualifies for this scheme. The maximum release that is available at age 55 is 19% of the property value.
This amount can assist in securing a person in their old age. The key benefit of an equity release loan is that a person can still own their property while enjoying its value.
The two main types of equity release are:
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Lifetime mortgages
A lifetime mortgage is a scheme where you receive tax free cash by taking a secured loan on the property. The cash is paid usually by lump sum. However, there is also an option to take a regular income by the borrower. This loan is repaid to the lender after the person dies or moves into care by selling the mortgaged property. You can release 19% to 50% of your property’s current value, dependent upon age.
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Home Reversion schemes
With Home reversion schemes, the property owner needs to sell a part or all of the property to the reversion company. If the borrower wants, he/she can sell the whole property. The money is paid to the borrower dependent upon the percentage of the property sold. For example if the reversion company takes ownership of 50% of your property, then after your death they will still retain 50% of the sale proceeds.
Equity release is a beneficial scheme that makes proper use of your assets in retirement.
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To establish whether equity release is right for you please call on freephone 0800 783 9652 or visit the Equity Release Supermarket website at http://www.equityreleasesupermarket.co.uk
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August 9th, 2010
Equity release schemes are preferred by an ever increasing number of retired homeowners, as they allow people to release tax-free cash against their property.
If you are 55 or over and own your own home then you are eligible to release some cash to boost your finances in your retired life. Home reversion plans and lifetime mortgages are the two main types of equity release schemes.
To release cash against your property, you must have little or no mortgage and the value of the property should be more than £70,000. Once you have received the lump sum of cash then you can spend it anyway you want. Compared to other loans or schemes, equity release schemes offer various benefits.
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Advantages of equity release schemes
One of the best features about equity release is that it allows you to live in your property even after selling it against the lump sum amount of cash. Also, you can transfer the equity plan to another property without paying any financial penalty. By opting for an equity release scheme, you do not have to worry about repayment as it will be done on death of the second owner or moving into long term care.
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As equity release schemes offer tax-free cash, you can spend it in different ways such as:
• Buy a second home or a car
• Repay outstanding debts
• Invest in home/garden improvement projects
• Go on a holiday
• Improve your retired lifestyle
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If you want to know the amount of cash you can release then an online equity release calculator is the best option. Once you have applied for equity release, the whole process will take around 6-8 weeks. At that point you will then receive the tax free cash & it can be paid by cheque from your solicitor or it can be sent by telegraphic transfer directly into your bank account.
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The process from application stage will require the services of an experienced equity release solictor, your independent equity release adviser & the equity release provider.
Your adviser will liaise between all parties concerned in order that the application runs smoothly & can ensure that any issues can be resolved quickly.
For these services the adviser will usually charge an advice fee which is deducted on completion of the equity release scheme. To understand the equity release process in further details including the step by step guide click here.
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Equity Release Supermarket advisers can help you calculate the amount you require & the equity release scheme that best meet your individual requirements.
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Please call freephone 0800 783 9652 to speak to an qualified adviser today
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Tags: equity release, Equity release calculator, equity release schemes, equity release solicitor
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August 8th, 2010
If you are over 55 years of age and own your own home then you can enjoy the benefit of equity release schemes. With the help of these schemes, you can release a lump sum amount of cash against the value of your property. Some equity release schemes also allow you to get a regular income from the value of your home.
Due to different market needs, three different types of equity release schemes have been introduced in the market. These include:
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• Lifetime mortgage
• Drawdown lifetime mortgage
• Home reversion plan
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Out of these above mentioned schemes, the lifetime mortgage is preferred by almost 90% of homeowners. So if you have decided to release the value of your home then make sure that you consider the features of a lifetime mortgage scheme.
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What is a lifetime mortgage scheme?
This is one of the most popular equity release schemes because it allows homeowners to release a lump sum amount of cash against their property. The interest and released amount is repaid by selling the estate when the homeowner passes away. This means that you can enjoy the cash and live in your home for the rest of your life.
Filling in the forms and understanding the documentation to release the value of your home should be under the guidance of an equity release consultant or advisor. He/she will consider the value of your home and select the right plan for you. Once you get this tax-free cash then you can spend it in clearing your mortgage, improving your lifestyle or on home improvement projects.
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To know how much cash you can release against the value of your property, you can use an online equity release calculator - click here to see how much you can release.
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Tags: equity release, Equity release calculator, equity release schemes, lifetime mortgages
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August 6th, 2010
As many people in the UK find it hard to maintain a good living, equity release schemes are becoming extremely popular.
Equity release schemes are specially designed for elderly people between 55 to 95 years of age. With an equity release scheme, homeowners can either get a lump sum amount or regular income.
The beauty of equity release schemes is that homeowners can continue to live in their property for their lifetime. When the homeowner passes away, the beneficiaries will sell the property with the lender being repaid from the sale of the property. Once sold, any remaining equity will be passed to the beneficiaries named in the Will, if one has been made. Should the equity release plan holder die intestate, then the net proceeds will be paid in accordance with the rules of intestacy . This happens if the property is sold for a considerably larger amount than what the balance of the equity release is.
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Different options of equity release schemes
The reversion companies offer equity release schemes with different options such as tax free lump sum and home income plans. Home income plans are perfect for senior citizens who want their money in the form of a pension. The amount of equity released is distributed as income or pensions for the rest of their life. This would be in the form of an annuity, which is basically exchanging a lump sum in return for a regular income for the rest of your life.
In such cases, if the equity release applicant has poor health then impaired life terms maybe available. which enhance the standard terms normally paid. This is due to the fact that if the annuity provider considers that life expectancy is potentially reduced due to health reasons, then they can increase the lump sum normally available.
The amount that you will receive via equity release scheme will depend on several factors such as your age, the type of property & its current market value.
If you are looking for the best way to generate income during your retirement, equity release can be an excellent solution to assist the enjoyment of your retirement years.
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To establish whether you will be eligible for an equity release with enhanced terms, please contact the Equity Release team on 0800 783 9652 or visit the Equity Release Supermarket website by clicking here.
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August 2nd, 2010
Equity release is probably one of the best ways to gain income or capital that has been locked in a home. This process is ideal for anyone who owns their own property. It can be carried out in two main ways. One method is through home reversion which includes selling some of your property to free up valuable funds. The other method is through a lifetime mortgage where a loan secured on your home is made by the lender.
Regardless of which method you choose, equity release can offer many benefits.
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Keep your home
In previous years, downsizing could mean having to move out of your home and start all over again. However, this is not the case with equity release. This lifetime mortgage scheme allows you to keep your home, which is possibly one of the best benefits. You are able to carry on living in your property with no monthly mortgage payments, thus not affecting your financial stability. The equity release scheme is eventually repaid from the proceeds of the sale of your property. This event is usually upon death or moving into long term care.
However, if the beneficiaries can come up with their own funds in order to repay the lender then theoretically they can then take possession of their parents property. This could be valuable for family reasons, particularly if they wish to use the parents home as their new main residence due to size. It could also be repaid by the children for investment purposes should they wish to rent out the property, thereby creating an additional income source to assist them financially.
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Enjoy a better life
Equity release will give you a good source of income or capital that can be used to make your retirement years more comfortable. This can be used to buy a holiday home or even for taking regular holidays overseas. Besides these, the tax free cash gained from equity release can also be used for meeting more important needs like home renovations or buying a new car.
Under most circumstances, equity release provides a guaranteed cash flow throughout your life. One of the best things about this kind of income is that it is usually free of tax so you can fully enjoy the fruits of your own hard work.
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For a list of valuable reasons to generate capital or income in retirement click here to visit the Equity Release Supermarket website.
Alternatively contact the Equity Release team on freephone 0800 783 9652.
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