Posts Tagged ‘home reversion schemes’
Tuesday, November 30th, 2010
There are many retired people who cannot find th quality of life they yearn for on the limited savings and small pensions they have. If you are suffering from financial difficulties then equity release can be the perfect solution for you. Equity release allows you to unlock money against the value of your home.
X
How does equity release work?
To qualify for equity release, you must be above 55 years old and own a home which is worth more than £60,000. Once you have opted for equity release, you will receive a lump sum amount of money or monthly income from the lender.
If you have decided to go for equity release then you must know that there are two different equity release schemes in the market.
Lifetime mortgages – These schemes are preferred by many homeowners these days because they can be provided in different formats to suit people’s circumstances. The different types of lifetime mortgages range from lump sum equity release to the flexible drawdown equity release schemes. The lump sum plans do as the name says on the tin, in that they provide a single, one-off lump sum which is fine if no further cash releases are required.
However, this can be difficult to predict & when interest rates for the lump sum & drawdown are the same then invariably the drawdown plans are the most popular equity release schemes available.
X
Home reversion plans – These equity release schemes allow you to sell the whole or only a percentage of your home to the home reversion lender. This means that you have the option to also keep some part of the property for your beneficiaries. These are the only type of equity release schemes that can guarantee an inheritance for your beneficiaries.
Both the above mentioned equity release schemes are regulated by SHIP (Safe Home Income Plans) and the FSA (Financial Service Authority). These organisations ensure that all the applicants get the protection that equity release UK schemes should receive in getting the appropriate deal for your circumstances.
X
To ascertain which or how either of the aforementioned equity release schemes can benefit you, please contact Mark Gregory on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
X
Tags: Add new tag, drawdown, drawdown equity release, equity release, equity release schemes, home reversion, home reversion schemes, inheritance protection, lifetime mortgage schemes, lifetime mortgages, SHIP
Posted in Equity Release | No Comments »
Friday, November 19th, 2010
Lower pension incomes and high living costs have resulted in retired people looking for different financial solutions to make ends meet.
Due to these issues, more and more retired homeowners are turning to equity release schemes for an additional source of income. Equity release allow homeowners to use some of the cash tied up in their homes and get a tax free lump sum. They are also permitted to continue living there rent free & in the case of lifetime mortgages with 100% ownership to.
X
Additionally there are other advantages gained from equity release schemes.
X
- No need to move – One of the best things about equity release schemes is that homeowners do not have to worry about moving out of their homes when they sign up. In the case of roll-up lifetime mortgages the plan holder retains 100% ownership of the property & can remain there until the second person has died or moved into long term care. With regards to the second type of equity release – home reversion plans, the planholder retains the portion of the property they do not sell to the reversion company.
- Inheritance protected equity release products – Another benefit of these schemes is that homeowners can now choose whether or not they want to guarantee a certain percentage of their home. This means that they can still be sure there is some equity left for their beneficiaries. This can therefore form part of a gift of their inheritance.
- Supplementary income – More than 50% of retired homeowners have wealth that is tied up in their property. For this reason, many choose home equity release schemes to gain additional income. This retired people to meet daily expenses & assist with the day to day costs of living in today’s retired environment.
- In all cases, homeowners can move home during the term of their equity release schemes. However, they have to notify the equity release company. The reason for notification to the lender is that the equity release planholder has two choices. Firstly, they have the option of porting the equity release scheme over to their new property. The new property would have to meet the lenders property criteria, however it can be transferred with no early repayment penalty. Secondly, the scheme can be repaid in full, thuis removing any future equity release liability. You would therefore need to bear in mind any potnetial early repayment charges.
As equity release schemes can be rather complex, it is best to have a professional explain and oversee the process. All Equity Release Supermarket advisers are authorised by the FSA & the equity release schemes they advise on are all SHIP members.
The Equity Release team will provide independent financial advice & research from the whole of the equity release market.
To gain from their experience, please call freephone 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
X
Tags: equity release, Equity Release Adviser, equity release schemes, home reversion, home reversion schemes, inheritance protection, lifetime mortgage schemes, lifetime mortgages, Roll up lifetime mortgage
Posted in Equity Release | No Comments »
Tuesday, November 9th, 2010
The current economic situation has forced everyone to look for different ways to raise money.
Equity release schemes are one option available to enjoy the fruits of retirement in a way many would never have envisaged.
Some people are still unaware of equity release schemes and their numerous benefits; here we aim to address those issues.
X
Maintain standard of living
Immediately upon retirement, there is an evident drop in income. Unfortunately expenses do not.
You may think that saved money during your working life will be adequate for you to live comfortably. Rising inflation & lack of confidence in pension plans might make this difficult.
There are other options to consider & one of these maybe to downsizing to a smaller home. Other options available prior to considering equity release would be using any savings, asking relatives for financial assistance, claim any benefits due or if you have a good disposable income there is still the option of an interest only mortgage. The Halifax Retirement Home Plan can assist here.
X
If you look into equity release schemes, you will notice that you do not have to sell your property. Therefore, you can remain at the property for the rest of your life.
Applying for equity release, enables you to obtain some of the cash value of your property and with a roll-up lifetime mortgage you still remain the owner. This way, you can maintain your standard of living and can avoid the hassle of moving into another house.
X
Fulfil your needs
Additional cash can help retired individuals to fulfil basic needs as well as allowing them to pursue leisure activities. You may want to clear some debts, go on a long holiday, buy a new house or simply develop new hobbies. Equity release schemes can help you with these things.
X
The age factor
Age is an important factor when buying an equity release scheme. Your age is directly related to the amount of cash you can get. The older you are, the more you can get. Lifetime mortgage schemes start at age 55 with a maximum release of 20% & run beyond age 90 releasing over 50%.
Home reversion schemes start at age 65 & again go past age 90 with the maximum release being the sale of 100% of your property to the home reversion provider.
X
No limitations on spending
A good thing about equity release schemes is that you can spend the money the way you want to and there are no restrictions. We would only advocate initially taking an amount which you are likely to require in the first 12 months. The reason for this is that drawdown equity release schemes allow you to take the equity release cash in stages rather than all at once. This ensures that you pay less interest in the long run as you only pay interest on the actual amount you have withdrawn.
X
Tax-free cash
The cash you receive from the scheme is free of income tax. However, if any funds are placed on deposit then you could pay tax on any interest gained.
X
To find out whether equity release is suitable for you why not have a free initial consultation with one of our qualified equity release advisers. Call now on freephone 0800 678 5159.
Alternatively, email admin@equityreleasesupermarket.co.uk.
X
Website – http:///www.equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, equity release schemes, Halifax, Halifax Retirement Home Plan, home reversion, home reversion schemes, lifetime mortgages
Posted in Equity Release | No Comments »
Thursday, 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:
X
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.
X
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.
X
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.
X
Tags: equity release, equity release schemes, Equity Release Supermarket, home reversion, home reversion schemes
Posted in Equity Release | No Comments »
Sunday, October 17th, 2010
Making a plan for retirement can be tricky and challenging. There are a number of things to consider and certain questions regarding eligibility that always crop up.
Equity release schemes can be confusing and hence one should always opt for independent financial advice from companies like Equity Release Supermarket.
Occasionally there can be doubts about one’s eligibility that can often deter people from enquiring about equity release schemes. However, if one has any doubts the help is close at hand.
Mentioned below are some frequently questions Equity Release Supermarket get asked regarding equity release schemes.
X
What are the eligibility criteria to qualify for equity release schemes?
Equity release is a scheme that was designed to benefit retired individuals. Therefore, the minimum age requirement for an individual to be able to opt for a the most popular option which is the lifetime mortgage scheme, is 55.
On the other hand, the second option which is the home reversion scheme, requires an individual to be at least 65 to qualify.
The property value upon which the equity release scheme is to be based upon should be valued over £70,000.
X
Who takes ownership of your property?
Well that would depend on which type of equity release scheme you decide to opt for.
With a lifetime mortgage you always remain 100% the sole owner of your property. This type of equity release scheme gives you the value for your property without you losing ownership.
Home reversion schemes require you to sell a part or all of your property to gain the benefits.Therefore dependent upon how much of the property you sell to the reversion company, will determine how much ownership you actual retain. For instance if you sold 60% of the property value, then you will still retain 40% ownership for yourself & ultimately your beneficiaries.
X
Do you have to pay for the loan?
Equity release schemes differ to residential mortgages as you have NO monthly payments to make. Your property is mortgaged with the equity release company & your loan is repaid by selling the property once you have passed away or moved into residential care.
The money has to be repaid by your beneficiaries or executors within 6 to 12 months, dependent upon the equity release scheme taken out. The interest is continually applied on the property until the loan is eventually repaid.
X
If you feel that you need advice on which equity release scheme is suitable for your situation, please ring the freephone number 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, equity release schemes, home reversion, home reversion schemes
Posted in Equity Release | No Comments »
Saturday, October 16th, 2010
Equity release schemes are perfect for elderly people who are looking for ways to generate funds during their retirement.
The less common home reversion equity release schemes allows you to sell a part or your entire property to the reversion company. In return, you can get a guaranteed lifetime lease and tax-free money with no monthly repayments.
You can continue to reside in your property for as long as you want. Home reversion schemes also guarantee an inheritance to your beneficiaries. It is a scheme where you sell a percentage or all of your property to the reversion company while retaining the rights to live rent free in your home for the rest of your life. The equity received can either be paid out as a monthly income, lump sum or a combination of both.
X
Some important benefits of home reversion schemes
As a home reversion equity release scheme is not actually a loan, there is no need to pay off any interest. Other equity release schemes such as lifetime mortgages not only charge you interest, but also reduce the inheritance for your beneficiaries which in extreme cases can erode ALL the equity in the property. This means that the interest amount can grow considerably over the years; in some cases it may exceed the value of your property.
This cannot happen with a home reversion scheme unless you select to sell 100% of the property in the first place.
X
- Benefit from rise in property values
Unless you have sold your entire property, you can get your share as the property value increases.Therefore, if you have sold 50% of the property value, you will still retain any growth in your share of the remaining 50% of the property.
X
- Release more equity compared to lifetime mortgages
With home reversion schemes, you can release more cash than lifetime mortgages allow you to. This can be advantageous should you have no children to leave your estate to. In addition home reversion schemes can have an impaired life facility built into the scheme. Therefore, if your health is poor or have an impaired life condition should as high blood pressure or you have suffered a heart attack, stroke or cancer then the home reversion company can give you a higher lump sum than otherwise have been. This would be due to the fact that they do not anticipate your life expectancy to be as high as the average & thus have actuarily decided they can afford to offer a greater lump sum.
X
To request further information on home reversion schemes & a home reversion quote, please contact the Equity Release Supermarket team on 0800 783 9652.
Tags: home reversion, home reversion schemes, impaired life, No negative equity guarantee
Posted in Advice | No Comments »
Friday, October 8th, 2010
Equity release schemes are the generic term encompassing all plans including lifetime mortgages & home reversion plans. They are potentially suitable for homeowners who preferably do not have a mortgage and have an income or lump sum requirement. If you are retired and want some money to enjoy your retirement then equity release is the best solution for you. By opting for equity release, you can unlock some amount of money against the value of your property without moving.
One of the best things about equity release is that it provides tax-free cash which can be used in various ways. This means that you can a buy a new car, go on holidays or pay of outstanding debts; more commonly credit cards & loans. There are different equity release schemes available in the market. One of the most preferred schemes is known as a home reversion plan.
X
What is a home reversion plan?
These schemes do not start until age 65, however I feel they only really offer preferential terms once the age of 70 has been attained. Under these schemes, you can sell a part or the whole of your property in return for a cash lump sum of money. Once you have opted for this scheme then your home or a part of it will belong to the reversion company. One of the two main advantages of home reversion schemes is that home reversion schemes allow you to live in your home for the rest of your life. The reversion company will grant you a lifetime tenancy which means you can live there rent free for the rest of your life. Additionally, because you are selling a percentage of the value of the house, then you are also guaranteeing the final percentage of the property that will pass to your beneficiaries. This is NOT the case with a lifetime mortgage scheme.
X
Advantages offered by home reversion plans
Once you receive money under a home reversion plan there is no need to worry about the repayments. This is because the lenders will get their share of the property value after your death & once the property is sold. Under this scheme, you can sell only a part of your property and keep the rest for your family or beneficiaries. This way, you can also benefit from the increasing value of the proportion of your part of the property. Home reversion schemes also tend to be cheaper in set up costs. The only fees with the major home reversion companies tend to be valuation & legal costs. Occasionally, Equity Release Supermarket do obtain free valuations as they do currently with Hodge Lifetime. Therefore, there would be no initial fees to pay on application & ALL costs would then be deducted on completion.
X
To obtain your guide to Home Reversion schemes, please contact the Equity Release Supermarket team on 0800 783 9652 or click here to register
Tags: equity release, equity release schemes, Hodge Lifetime, home reversion, home reversion schemes, income plans, lifetime tenancy
Posted in Equity Release | No Comments »
Tuesday, October 5th, 2010
Equity release schemes enable you to convert the equity from your property into a usable cash amount. These schemes are proving helpful for many older homeowners. Some of these equity release schemes function by offering you a regular extra amount of income or a lump sum amount, or sometimes both.
While equity release schemes may look attractive, they can be complicated and difficult to understand. Thus, before opting for an equity release scheme, it is better to get legal and financial advice from industry professionals.
Two types of equity release schemes exist – home reversion and lifetime mortgages.
X
Home reversion schemes
A home reversion equity release scheme allows you to sell a part (or a percentage) of your property to generate the required funds. The amount of equity you get from the equity release scheme will be lower than the market value of your property. This is due to the fact you are able to live rent free for the rest of your life in your property. After you pass away, the reversion company will sell your property and get their share of the money from the sales proceedings.
Home reversion schemes are only available from the age of 65.
X
Lifetime mortgages
Lifetime mortgages let you borrow the money without any need for monthly repayment. Similar to a home reversion scheme, lifetime mortgage equity release schemes allow you to stay in your property. The amount of equity remaining will completely depend on the final value of your property and your age. The money that you borrow can either be paid to you in instalments, a lump sum amount or both.
With this equity release scheme, the lender does not own your property. The amount that you borrow must be paid off when you sell or move out of your property, or when you die.
Lifetime mortgage schemes commence at the earlier age of 55 with a maximum release available of 19% of the property value.
X
For advice on which scheme would be best for you, please contact the Equity Release Supermarket team on 0800 783 9652.
Tags: equity release, Equity Release Adviser, equity release schemes, Equity Release Supermarket, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages
Posted in Equity Release | No Comments »
Thursday, September 23rd, 2010
With an increasing number of retired people unable to meet their expenses on pension, equity release schemes are becoming one of the best tools to solve this area of need. It allows individuals to unlock the equity that they have built in their home, thereby assisting them meet the shortfalls in their financial affairs.
Equity release schemes allow homeowners to release the equity from their property to generate a tax-free lump sum or regular income. The money generated from equity release can be utilised to pay for home improvements, debt consolidation or to help meet the requirements afforded to a comfortable and luxurious lifestyle after retirement.
Retired persons over 55 years of age and having their own property are the ideal candidates for equity release schemes. With different types of equity release schemes available, you should choose the one that suits your requirements.
X
Types of equity release schemes
Two different types of equity release schemes are currently available – home reversion schemes and lifetime mortgages. As both schemes offer their own unique advantages, you must choose the best one.
Home reversion – This scheme allows you to live in your property till you die or move into long term care whether that is a retirement home or with relatives. However, you need to sell a part or your complete property to the reversion company. In return, the home reversion company will either offer you regular income or lump sum cash, depending on your requirements. The most popular form of release is the tax free lump sum option.
Lifetime mortgages – With lifetime mortgage equity release schemes, you will always have complete ownership of your property. By opting for a lifetime mortgage scheme, the need for making monthly repayments is completely eliminated. You can even continue to live in your property until you pass away.
If you are looking for a solution to retire without any worry, equity release schemes can be the perfect solution.
X
To chat to a specialist equity release adviser, contact the equity release team on 0800 783 9652.
Tags: equity release, Equity Release Adviser, equity release schemes, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages
Posted in Equity Release | No Comments »
Wednesday, September 22nd, 2010
Your property is your biggest asset. As the cost of property in the UK is steadily rising again, equity release schemes can help you release some of the equity you have built up in your property.
‘Equity‘ is defined as the difference between the property valuation less any mortgage that is secured on your home.
An equity release scheme is helpful for retired homeowners who live on pensions but are unable to meet their daily expenses. Additionally, people who have adequate incomes may still struggle to pay for life’s little luxuries & equity release can also help here.
If you are a retired pensioner and desire to spend the rest of your life without any type of financial worries, equity release can be a feasible option. An equity release scheme saves you from the worry of any monthly repayments during old age as the loan is only repaid once the property is sold after you pass away or move into care.
X
Take professional help to ease the complete procedure
Home reversion and lifetime mortgages are the two different equity release schemes you can choose from. As these plans involve many different companies who in turn may have different schemes, you must take professional help to determine the most feasible option to suit your requirements.
When opting for an equity release scheme, you need to consider different factors such as welfare and tax benefits and the inheritance value of your property against the amount you get by releasing the equity. Limits are imposed by the Pensions Service on how much you are allowed to keep in savings before any benefits are affected. Currently you can keep £10,000 in savings before there is any effect on means tested benefits such as pension credit & savings pension credit.
By taking professional help from equity release specialists, you can clear all your doubts about different equity release schemes. Advisers will also make sure that the process goes smoothly without any hassles. If you are looking forward to spend your retirement without any financial worries, equity release could be the best option for you.
X
To ascertain which equity release plan is suitable for your requirements please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, equity release schemes, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages, means tested benefits
Posted in Equity Release | No Comments »
|
