Equity release schemes are designed for people who want to release a tax-free cash amount against the market value of their home. If you own a property you can get a lump sum amount of cash to boost your finances.
Equity release schemes are divided into two main types such as home reversion plans and lifetime mortgages.
In today’s tough economic situation, people who are above 55 years of age can opt for an equity release scheme for various reasons such as:
• Home and garden improvements
• Holidays
• To clear debts and loans
• To pay an outstanding mortgage
If you are considering the scheme you should try out an equity release calculator which will help you to calculate how much money you get against your home.
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Factors which affect the amount of money you can release:
The amount of money you can release depends on various factors such as your age, property value, plan and also provider.
All equity release schemes are specifically designed for people who are above 55 years of age and below 95 years of age. Other than this, the value of your home must be worth a minimum of £70,000. Moreover, the property must be either freehold or a leasehold with a minimum period of 75 years remaining. You should also possess no or very little mortgage which must be paid immediately after the cash is received.
Before making a final decision, it is important to consult an independent financial adviser who will inform you about the current interest rates and other aspects about equity release. The adviser will factfind your current situation, assess your requirements & make a recommendation of the most suitable equity release scheme for you.
