Posts Tagged ‘home reversion’
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.
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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.
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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.
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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
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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.
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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.
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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
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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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Monday, September 20th, 2010
Equity release schemes offer optional loans to homeowners who wish to use their property as a source of income generation after their retirement. It is a type of flexible mortgage that offers tax free cash to homeowners secured against the current market value of their home.
Equity release schemes are available in two formats – home reversion or lifetime mortgage. If you are retired, over 55 years of age and own a property with a good market value, lifetime mortgage equity release scheme could be the ideal option for you.
On the other hand, a home reversion equity release scheme could be attractive for different reasons. It is only appropriate for homeowners above 70 years of age & is the only scheme where you can guarantee a specific inheritance for your beneficiaries. This can be useful if you have a specific attitude that you wish that at least some of your residual estate will pass to someone after your death.
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With equity release schemes, you can either get the loan amount as a lump sum or in the form of monthly payment. Equity release schemes are fully regulated mortgages and as such come under the scrutiny of the Financial Services Authority (FSA). This ensures that you have full protection & recourse should inappropriate advice be given.
In addition to the protection offered by the FSA, you also will require the services of an equity release qualified solicitor. Upon processing your equity release application, your solicitor will be required to sign a SHIP (Safe Home Income Plans) certificate. This will confirm that he/she has discussed your requirements & noted that you are happy & fully aware of the equity release scheme & its implications.
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What if the value of the property falls?
If the value of your home drops, this will also affect the remaining equity in your property & have the knock on effect of reducing the amount your beneficiaries receive. The final equity release balance will be repaid once the property is sold after the homeowner passes away or moves into care. Nevertheless, you do have the assurance of the ‘no negative equity guarantee‘. This ensures that at final repayment, should the equity release balance be higher than that of the property value, the lender will receive no more than the property value.
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All equity release companies have to provide a Key Facts Illustration (quote) to confirm the set up & associated costs including surveyor charges, legal charges, application fees and redemption charges. This document should always be discussed with a qualified equity release adviser who can explain the features & benefits of the scheme.
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If you wish to request an equity release quote, contact Equity Release Supermarket on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, lifetime mortgages, No negative equity guarantee
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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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Tuesday, August 24th, 2010
The lack of sufficient pension provision has further created a problem to older citizens over the past few years. Thankfully, several retirement schemes have been to help such individuals. Equity release schemes in particular are set to rise in popularity as older citizens seek to use the value in their homes to cover the financial shortfall.
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The increasing popularity of equity release schemes
Some pensioners are turning towards equity releases schemes as they consider the prospect of trying to increase their standard of living. Such schemes also help them maintain the quality of life, post-retirement. From feedback with clients, it is becoming increasingly apparent that children want their parents to lead a prosperous & enjoyable lifestyle.
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The following is a straightforward guide for those individuals who want to opt for equity release:
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Firstly understand that equity release is the term used to cover financial products which are used to release equity in the home. However, you will not have to meet any monthly payments in order to be entitled to apply for this particular scheme. Equity release schemes are divided into two main categories namely, lifetime mortgages and home reversion plans.
Lifetime mortgage schemes are one of the most common equity products. They are also popular among the older citizens as they provide a steady supply of cash to them. The cash might be given on the basis of a monthly instalment or lump sum.
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Some of the superior advantages of equity release schemes are as follows:
• No monthly payments
• Fixed rate of interest for life
• A no negative equity guarantee
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However, keep in mind that equity release is not the final solution for cash-flow problems. Be sure to consult an equity release advisor before arriving at a decision.
All Equity Release Supermarket financial advisers are fully qualified to give independent equity release advice.
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Please call freephone 0800 678 5159 or visit the market leading equity release website at Equityreleasesupermarket.co.uk
Tags: equity release, equity release schemes, home reversion, release equity in the home
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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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