Posts Tagged ‘home reversion schemes’
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.
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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.
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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
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Saturday, September 18th, 2010
Almost all people dream of living a peaceful and hassle free life after retirement. They hope for economic security and a lot of valuable time to spend with their family. Although the cost of living has increased, pensions remain much the same.
In order to tackle financial problems, many retired homeowners look for other means to generate funds. With house prices staedily rising again, unlocking the equity from one’s property is the best solution to generate income after retirement. Retired homeowners can opt for equity release schemes to boost their cash flow. Home reversion and lifetime mortgages are the two different types of equity release schemes one can opt for.
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How equity release schemes are helpful
Equity release schemes help homeowners to unlock the equity that they built in their property while still living in it. Homeowners can get the money in the form of monthly instalments, a tax free lump sum amount or a combination of both.
With lifetime mortgages, homeowners can enjoy residing in their property until they pass away or move into care. After the death of the homeowner, beneficiaries will sell the property to pay off the loan amount. If the value of the property rises, some amount will be given to those named in the will of the homeowner. Due to these advantages, equity release schemes are becoming highly popular among homeowners.
If you are retired, own a property and are over 55 years of age, you can opt for equity release schemes to generate additional income.
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For further information on equity release & the different equity release schemes available, please contact Mark Gregory on 0800 783 9652.
Tags: equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgages
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Tuesday, September 14th, 2010
Many individuals still are still taking financial issues into their retirement. We are all aware of the issues that have dogged the pensions industry over the last decade or two. With the decline in final salary schemes & corresponding members of such schemes, retirement that ensures a safe and constant source of income is a worrying concern.
To solve such pension shortfalls & the financial problems in retirement this causes, equity release schemes have been introduced.
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Some facts about equity release schemes
Before opting for equity release, you need to know some important facts about it.
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Payments received
You are paid by the equity release lender for the property you mortgage. This money can be paid as a lump-sum amount or as a monthly income. The type of payment to be received depends on the applicants choice. Monthly payments are the constant income that works exactly like a monthly salary. A lump sum payment is when you can retain the complete value of your property at one time. This type of payment can help you to invest in another property, maybe a holiday home for yourself or a deposit on a new property for your children. People who use an equity release scheme as an additional form of income choose to receive the payment as a regular lump-sum amount.
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Repayment of loans
Roll-up equity release schemes have a unique benefit. They allows you to maintain the complete ownership of your property for your lifetime. You can enjoy complete rights over your property even after mortgaging it without worrying about the repayment at all. Interest is added annually to the actual amount till the loan is repaid.
On the other hand, a home reversion scheme allows you to sell your property and then receive the money. In this case, you do not have to pay anything in return later on. The loan should be paid within a period of 6-12 months.
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Should you require further advice or quotations on lifetime mortgage or home reversion schemes please contact Mark Gregory on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, equity release schemes, Home Income Plans, home reversion, home reversion schemes
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Tuesday, September 7th, 2010
Equity release is different form of finance to the usual bank loans and mortgages. The main reason for this is because NO monthly payments are required & also as it provides money against the value of your home with the allowance of you continuing live in it. If you are a homeowner and over 55, then equity release is an ideal option for you. With the help of equity release schemes, you can financially secure your retirement.
By opting for equity release, you can potentially receive a lump sum or regular income. To qualify for equity release, the value of your home must be over £70,000 & located in the United Kingdom. The countries within the UK vary between the equity release companies. However, they will all offer equity release in England & Wales, whilst some will only lend in Scotland & Northern Ireland. Again, some will offer equity release schemes on the Isle of Wight & only some on the Isle of Man, therefore to ascertain availability please ring freephone 0800 783 9652.
Due to different requirements, equity release schemes have been introduced onto the market. A home reversion plan is one the 2nd most popular scheme and is offered currently by four financial institutions within SHIP.
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Home reversion plans
Under a home reversion plan, homeowners can release money against the value of their property without worrying about monthly repayments. By opting for home reversion plans, you can sell a part or all of your property. You (& any partner) need to be a minimum age of 65. Better terms for the home reversion schemes are obtained once you have both surpassed age 70.
Even after selling part of the property, you can continue living there but the legal owner will be yourself & the financial institution. If you decide to sell 100% of the property value then the reversion company will have sole ownertship of the property, leaving no inheritance for any beneficiaries.
Different applicants will be eligible to release different amounts of money against their home. One of the major factors which affects the equity is the age of the homeowners. Also, the value of the property plays an important role.It is therefore a conbination of these factors that govern the amount you can release. Another important influence is health as there are now equity release schemes that will consider impaired life applications.
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Other than home reversion plans, you can also opt for lifetime mortgages or home income plans to release money against your property. Contact an independent equity release specialist such as Equity Release Supermarket who with their experience will guide you in choosing an appropriate equity release scheme.
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To obtain the services of one of the Equity Release Supermarket team email admin@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, impaired life, income plans, lifetime mortgages
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Tuesday, August 31st, 2010
Some people will be unsure how to begin the equity release procedure. Anxiety with proceeding with this form of borrowing could result in never receiving benefits from this excellent form of lifetime mortgage. Similarly, they also fail to consider certain important points which form an integral part of equity release schemes.
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Equity release is basically the method of utilising the current value of your property to get a steady supply of cash. The cash may be received in a lump sum or in instalments.
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Age is usually the major decisive factor while deciding the percentage value of the home which can be released. For instance, an older person looking for equity release is allowed to release a higher percent value of their home. However, a younger person will not be allowed to release the same value.
The following are some important points to mull over when opting for equity release:-
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Age – As mentioned, age plays an important role while determining the percentage value of the home which can be released. Keep in mind that there is no maximum age limit as such when it comes to determining the percentage. For instance at age 55 which is the youngest possible age for equity release, themaximum release is currently 19%. As the age increases, so does the percentage.
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As a consequence, the following are examples of maximum releases possible relating to a roll-up equity release scheme: -
Age 55 – 19%
Age 65 – 29%
Age 75 – 40%
Age 85 – 48%
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Regulation - Lifetime mortgages and equity release are regulated and monitored by the Financial Services Authority. This came into effect after adverse publicity with regards to older equity release schemes which were the fore runners to todays plans. Therefore, in 2004 the lifetime mortgage market became regulated under the Financial Services Authority (FSA). Home reversions followed later & became regulated in 2007.
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Choosing an equity release plan- If you are choosing an equity release plan, keep in mind that it should have a no negative equity guarantee. This is a requirement of SHIP (Safe Home Income Plans) that any equity release scheme currently a member must have this feature present within the plan. The no negative equity guarantee provides security that on eventual repayment, be it on death or long term care, the value of the debt can never exceed the property value.The worst case scenario would be that no equity will remain for the children, however at the same time no debt can be incurred.
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Consideration of the above mentioned factors will help you immensely when choosing an equity release plan.
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To discuss any of the features described above, or to ascertain how much you can borrow please call one of our equity release specialists on 0800 783 9652.
Altenatively, you can email mark@equityreleasesupermarket.co.uk
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Tags: equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages, Roll up lifetime mortgage, SHIP
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Monday, August 23rd, 2010
If you are 55 plus and own your own home that is your main residence, then you are eligible to choose from any of the current equity release schemes.
Today, many retired people are opting for equity release schemes because they offer a lump sum of money against the value of the property. Home reversion plan and lifetime mortgages are two different types of equity release schemes.
By opting for home reversion plans, you can sell all or just a part of your property in exchange for money. This tax-free cash will help you to live the rest of your life in financial security. There is also a lifetime mortgage scheme which allows homeowners to sell their whole property for money.
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Lifetime mortgages are further divided into various types such as:
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Roll-up plan – Under this scheme, you can borrow an amount of money from the mortgage lender against your home. You do not have to make any payments to the lender in order to repay the equity release mortgage. Instead the interest charged is added to your last years balance & compounded annually thereafter. Therefore the balance will increase year by year until the equity release planholder either moves into care or dies. At this point, the property is usually sold & the equity release company is repaid.
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Home income plan – By opting for this scheme, you will receive a regular monthly income against your home. In this scenario, a percentage of the value of the property is sold in exchange for a tax free lump sum. These funds are used to purchase an annuity which is how the scheme then provides the monthly income. The lender or financial institution will be paid by selling the home after you die.
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Interest-only mortgage – Unlike the roll-up plan, this type of equity release scheme allows you to pay off the interest charged monthly. Therefore the balance of the mortgage will remain exactly the same for the duration of the plan term. As a consequence the beneficiaries will know the exact amount that will be deducted from their inheritance. The actual loan is again repaid by selling the property. For interest only lifetime mortgage deals see our website.
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Out of the above mentioned lifetime mortgage schemes; you can choose the one which suits your financial needs by contacting Equity Release Supermarket on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, Home Income Plans, home reversion, home reversion schemes, interest only mortgage, roll-up scheme
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Sunday, August 22nd, 2010
Equity release is a concept which is often misunderstood. It is a common myth that you lose your property if you opt for this scheme. This is not the case.
Equity release is the equity tied up in your property that you can now release. This facility lets you still enjoy the ownership rights by mortgaging your assets. equity release schemes give you 100% ownership of your property till you die.
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What are the different types of equity release?
There are two types of equity release scheme:
Lifetime mortgage: A lifetime mortgage scheme lets you retain complete ownership of your assets. An individual who takes the loan has no responsible any monthly payments. The loan is eventually repaid by the legal heirs after the plan holder moves into care or eventually dies. Hence, the reason why this is known as a lifetime mortgage scheme.
Home Reversion scheme: You need to sell part or all of your property to the reversion provider for this scheme to work.
There are three reasons how the size of the release can be affected: -
- the greater the percentage of the property sold, the greater the size of the release
- the older the equity release applicant, the higher the amount that can be raised
- if their is an element of ill-health, then the home reversion provider can release a larger than normal cash lump sum
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Types of payment
There are two types of method of receipt of the cash payment you get in an equity release scheme; a lump sum and a monthly income payment. You can opt for one of these payments dependent on your needs.
A lump sum amount can be used for capital expenditures, while monthly payments can be chosen by those who need a regular income in retirement.
The most important benefit of equity release is that it gives you tax-free money. The only thing you need to remember is that you can mortgage the property which you own.
The minimum age to be eligible for these schemes is 55 years for a lifetime mortgage and 65 for the reversion scheme.
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To obtain advice on which is the right equity release scheme for you please ring the Equity Release Supermarket team on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, ill health equity release, impaired life, lifetime mortgage schemes, lifetime mortgages
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Wednesday, July 28th, 2010
If you want to secure your retirement life financially then equity release should be a major consideration.
The important feature of today’s equity release schemes is that they allow you to unlock money against the value of your property without you having to move.
By opting for an equity release plan, you can get a tax free cash lump sum or you can select the regular income option. Your independent equity release adviser will guide you as to the most suitable equity release plan based on your individual requirements.
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Today, many homeowners who are above 55 years of age prefer to use an equity release scheme to boost their income. To qualify for equity release, you have to own a home with a value of more than £70,000. You should have little or no mortgage in order to qualify for these equity release schemes.
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The many features of equity release schemes
Equity release schemes are basically divided into two main types such as:
• Lifetime mortgages
• Home reversion plans
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Both the above mentioned equity release schemes allow you to get cash against the value of your home or property without you having to leave it. During the life of the equity release scheme there are no monthly payments to be made. Instead, the interest being charged is added to balance of the equity release on a yearly basis. It will therefore compound interest over the years at a fixed rate which remains the same for life.
The repayment is eventually made by selling your home when you die or move to long term care. Equity release schemes are perfect for homeowners who do not have any family as there is no as much reliance on how much equity remains at the end of the day.
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Apart from above mentioned benefits, equity release schemes also offer tax-free cash which can be used to spend as you wish. There are no restrictions on how you decide to spend the money.
This means that you can buy a car, a second home, new suite & many other home improvements. One of the most popular reasons for equity release currently is to consolidate outstanding debts which has the effect of reducing monthly outgoings & thereby increasing disposable income in retirement. Click here so see examples of how Equity Release Supermarket clients have spent their equity release funds.
However advice should always be obtained in order to establish the best way of fulfilling your requirements. There are many ways of releasing equity from your property & this is where independent financial advice from an Equity Release Supermarket adviser can save you thousands of pounds by having the choice from the full range equity release schemes.
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Call the Equity Release Supermarket team today on 0800 783 9652 or visit the market leading equity release website at http://www.equityreleasesupermarket.co.uk
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Tags: equity release, equity release schemes, Home Income Plans, Home Income Schemes, home reversion, home reversion schemes, Independent equity release advice
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Thursday, July 22nd, 2010
Are you over 50 and retired? Are you looking for a way to generate income after your retirement? If your answer is yes, opting for an equity release plan can be a good solution. Equity release advice from a reliable source can be helpful, especially for those homeowners who seek to access the value that have locked into their home.
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.
Tags: Add new tag, equity release, equity release schemes, Financial adviser, home reversion, home reversion schemes, lifetime mortgages, qualified adviser
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Saturday, July 17th, 2010
Equity release is a method of acquiring a stable income source from the capital value of your home while you still live in it. This type of loan is usually paid to the provider after the homeowner passes away or moves into long term care. Equity release is a perfect option for people above 55 years of age, who have locked their assets into their property and need to use those funds during their retirement.
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Some features and facets of equity release
Equity release can be of two different types – lifetime mortgage and home reversion.
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Lifetime mortgages
This type of loan is generally used to create a retirement fund for the borrower to spend on enhancing retirement lifestyle. The money is usually paid as a lump sum amount.
Interest is added to the capital initially borrowed during the loan term. This amount is paid when the owner moves to a retirement home or sold off after the borrower passes away.
The debtor retains 100% ownership of the home together with other responsibilities and costs of maintaining the property. However, the only negative aspect of a lifetime mortgage is that the accumulated capital and interest compounds yearly, thus potentially reducing the inheritance that will be passed onto the beneficiaries. Nevertheless, with property values hopefully rising over the years, this roll-up of interest can offset to some degree the interest accumulation on equity release schemes.
The final outcome of the equity release scheme is that the lender will require eventual repayment of the scheme from the sale proceeds. However, after this event the executor of the estate will have between 6-12 months in which to finalise this repayment. This should provide enough time for a adequate sale price to be achieved for the estate & hopefully provide a surplus capital amount over & above the equity release balance.
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Home reversion plans
With this option, the homeowner sells the whole or a fraction of the property to a reversion company. The reversion company offers a tax free capital sum or a regular income to the borrower,. Moreover, borrowers can continue to stay in the home till their death even if they do not own it any more. They are provided with a lifetime tenancy agreement which allows them to remain in situ until they either die or move into long term care.
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To discuss the advantages & disadvantages of lifetime mortgage or home reversion schemes please contact Mark on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk.
Alternatively, visit our website at http://www.equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgage schemes, lifetime mortgages
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