Posts Tagged ‘impaired life’
Sunday, July 3rd, 2011
More great news for the increasingly buoyant equity release market as Partnership re-enter with their Enhanced Lifetime Mortgage plan.
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Specialists in impaired life annuitys; Partnership are now bringing their underwriting expertise to equity release schemes. The logic behind their offering, provides a bespoke underwriting event for each client looking to achieve a maximum equity release status. Their experience from the enhanced annuitys market has led to a radical re-think in the equity release market where effectively the same principles can apply.
Consideration for impaired life equity release schemes is certainly gaining momentum as rumour has it other equity release companies such as Aviva may also be looking into the possibility of developing their own impaired product. In fact any of the existing equity release providers who offer an annuity proposition could be in the market with potential launches under their wings?
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So what is an impaired life equity release scheme?
Well firstly lets have a look at how an impaired life annuity works…
Primarily, an enhanced annuity provider will ask the annuitant a series of health questions which dependent upon their health conditions & severity, will determine the size of the annuity pension they will receive. In essence, the worse their health is the better, as they will potentially receive a more sizeable pension due to their life expectancy not being as long as a healthy person.
It may sound crude, however Partnership’s years of underwriting experience allows them to now offer the same principles in the equity release market by offering a bigger lump sum than standard equity release providers. The maximum release, dependent upon the health questionnaire is 55% of the property value.
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What illesses will qualify?
The questionnaire itself is not as detailed as one would imagine. Likewise the number & severity of the qualifying conditions is lower than expectations, thus making the underwriting aspect of the equity release plan simplistic in assessment. The health questions are as follows:-
- Have you smoked 10 cigarettes per day for the last 10 years?
- Have you been diagnosed with high blood pressure, requiring ongoing medication?
- Have you suffered a heart attack requiring hospital admission?
- Do you suffer from diabetes, requiring insulin or tablet treatment?
- Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs)?
- Have you suffered from angina, requiring ongoing medication?
- Have you been diagnosed with cancer requiring surgery, chemotherapy or radiotherapy?
- Have you been diagnosed with Parkinson`s disease?
- Have you been diagnosed with multiple sclerosis?
- Have you taken early retirement on the grounds of ill health?
- Are you currently taking any prescription medication?
Given this information, the online Partnership equity release calculator will then produce a maximum lending figure taking also into account age(s) & property valuation. A signature will then be required on a declaration form to confirm the medical questions have been correctly answered as only a sample number of applications will actually be looked into with the clients general practioners. This makes the application process quicker & smoother putting the onus on the applicant accurately qualifying their ailments.
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Are their any other features in Partnership’s enhanced lifetime mortgage scheme?
The simple answer to that is yes.
Partnership have managed to squeeze in some important features that provide additional security & protection for applicants. Aside from being a member of SHIP & thus passing the protection features of the no negative equity guarantee, assured tenancy & ability to move home, there is also an Inheritance Protection facility.
The inheritance protection feature is included at no extra cost & provides the ability to protect a part of the final sale proceeds which can then be successfully passed onto the heirs & beneficiaries. Therefore, peace of mind reigns when the biggest objection to the use of equity release schemes is ‘how much will be left for the children when I die’.
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What is their lending criteria?
The Partnership Enhanced Lifetime Mortgage is currently only available in England & Wales on property valuations over £70,000. Their approach to property types is standard amongst the industry, although they will permit borrowings on some concrete build constructions such as Laing Easy Form & Wimpey No Fines which down to the valuers comments would pass as acceptable.
The minimum age of the youngest applicant must be 60 & at least one suffering from one of the aforementioned illnesses/conditions. The minimum loan on application is £25,000 which is higher then most equity release providers, however the plan is pitched at the higher release end of the lifetime mortgage market.
The major factor setting themselves aside from the alternative impaired life equity release offering from more2life is the FREE cost to market for any applicant. Partnership have initially launched with a tempting proposal of a FREE valuation & NO application or completion fee payable on set up. In fact they even go one step further with a CASHBACK of £250 on completion which goes some way to offsetting any legal fees incurred.
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Again, thanks to companies such as Partnership showing innovation, the equity release market has shown its durability over the past 12 months at a time of economic diffculties. Perhaps the old days when the two words – ‘equity release’ & ‘apprehension’ were associated, are now becoming more of a distant memory.
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If you would wish to find out whether you would qualify for an enhanced lifetime mortgage with Partnership, please fill in this Partnership enquiry form or call freephone 0800 678 5159.
If you smoke manufactured cigarettes, have you smoked 10 or more cigarettes per day for the last 10 years?
If you smoke rolling tobacco, have you smoked more than 3ozs or 85g per week for the last 10 years?
Have you been diagnosed with high blood pressure, requiring ongoing medication?
Have you suffered a heart attack requiring hospital admission?
Do you suffer from diabetes, requiring insulin or tablet treatment?
Have you suffered from a stroke (CVA), excluding mini-strokes (TIAs)?
Have you suffered from angina, requiring ongoing medication?
Have you been diagnosed with cancer (excl. skin cancer and benign tumours) requiring surgery, chemotherapy or radiotherapy?
Have you been diagnosed with Parkinson`s disease?
Have you been diagnosed with multiple sclerosis?
Have you taken early retirement on the grounds of ill health?
Are you currently taking any prescription medication?
Tags: enhanced lifetime mortgage, equity release, equity release schemes, impaired life, lifetime mortgage schemes, maximum lump sum, more2life, No negative equity guarantee, Partnership
Posted in Equity Release, News | No Comments »
Friday, July 1st, 2011
An increasing number of senior citizens now opt for equity release schemes with the aim to release cash (equity) from their property. This can be a wise decision in order to generate extra income during their retirement years. While a lot of equity release providers are available, not many people are aware of how such equity release schemes work. At such times, it is prudent to consider taking advantage of professional help.
Financial institutions now offer the use of equity release calculators to their customers. Using this tool, one can determine the amount of equity that can be released from their property. Based on the outcome, the applicants can decide whether or not equity release is a viable option for them.
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With the number of equity release schemes on the increase, such as the recent addditions of Stonehaven, more2life, New Life Mortgages & last week Partnership, it is more important than ever to seek the services of an FSA qualified independent financial adviser. They will have the equity release tools available they will have been trained with to establish which scheme will provide the correct amount to be released. Guarded with this information it can lend them to the next stages of the decision making process in ascertaining which lifetime mortgage scheme is most suitable for such circumstances.
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Therefore, the equity release calculation can be guided towards establishing the following lifetime mortgage scenarios: -
- What is the maximum I can borrow on an equity release plan?
- What is the lowest interest rate on an equity release scheme?
- What is the minimum amount I can borrow on a lifetime mortgage?
- How much can I borrow on an equity release scheme if I am in poor health?
- What are the costs in setting equity release schemes up?
Equity release calculators will help answer these types of questions & with the calculator tools of Assureweb, Trigold & The Exchange each equity release adviser with the CeRER & CeMap qualification, will have these methods of calculations available.
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The workings of an equity release calculator
Various equity release calculator formats exists that can usually be found on the website of the mortgages & other financial organisations. The homeowner first needs to provide information related to their property. Based on this data, the equity release calculator will predict an approximate amount of equity that can be released from their property.
Advanced calculators are also available that offer in-depth information related to different possibilities. However, the availability of such a tool is subject to the equity release provider. Before deciding on a deal, homeowners are always advised to try two different calculators. To get the best deal with equity release schemes, obtaining professional help would be wise.
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Practically, the size of the equity release is governed mainly by three factors which are: -
- Age of the youngest applicant
- The valuation of the property
- Whether any existing mortgage or secured loan is present
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Dependent upon the answers to these questions will determine the net equity release availability from the property. The data provided by the equity release calculation will be the maximum equity release posssible, however it will give an indication of the extent to which one can go & therefore tyou will have the knowledge as to whether equity release will be of assistance.
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More detailed equity release calculators can advise beyond these basic measures. For instance, should a history of ill heath be present, then a larger than normal lump sum can be achieved with an impaired life equity release scheme. This will not be present or have the ability to be calculated upon by the more basic equity release calculators. Additionally, the majority of calculators will only refer to roll-up lifetime mortgages & not home reversion plans, thus they do not answer the whole question & should only be used for guidance, not literally.
Again, it is therefore of upmost importance to seek the services of a qualified independent equity release advisor who has the accurate research & calculation tools at his disposal; whom with your input & personal information, can guide you to the right equity release plan.
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The Equity Release Supermarket calculator can provide an overview & the statistics involved with the maximum amount that can be borrowed on each equity release scheme. Experience our equity release calculator today as see how much you can release. Alternatively, speak to one of the Equity Release Supermarket specialists who can be found in your area by using the ‘find an adviser‘ interactive UK map.
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Equity Release Supermarket are established & award winning lifetime mortgage & Halifax Retirement Home Plan specialists.
Call freephone 0800 678 5159 for all your post retirement mortgage questions.
Tags: calculation, equity release, Equity release calculator, equity release schemes, Equity Release Supermarket, impaired life, more2life, New Life Mortgages, Partnership, Stonehaven
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Tuesday, April 19th, 2011
Upon researching whether equity release is a suitable option, you may be finding most of the information available in the press or on the internet focuses on the main types of plans available which are Roll-Up Lifetime Mortgages.
There is in fact another type of plan which is less commonly understood and these are called Home Reversion plans.
I think it’s important to consider these plans in more depth. Increasingly home reversions are become more appropriate for those considering taking an equity release plan, particularly if those looking for a simple plan giving a high degree of certainty.
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A home reversion plan involves transferring ownership of all or part of your property to the provider in exchange for a tax free cash lump sum (or you can choose regular payments). Your property is independently valued and from this the provider will work out how much they will pay you for the percentage of the property being sold.
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The amount you’re paid wont be as much as the market value of the property. This is simply because you will be living there rent free for the rest of your life (or until moving out permanently into long term care). As a “rule of thumb” the older you are the more the home reversion provider will pay you for the share sold, that’s because your life expectancy is less. You are still responsible for paying all your bills, insurance and maintaining the property. At the end of the plan the property is sold and if you’ve retained part of it, your share of the proceeds will be paid to your estate.
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When considering a home reversion company, it’s important to choose a provider who is a member of the trade body Safe Home Income Plans. SHIP members offer a guarantee to their customers, the main benefits of this are that you’re allowed to remain in your property for life (provided the property remains your main residence) and you have the right to move plan to another suitable property without any financial penalty. Plus of course you have the safeguard of independent legal advice.
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Home reversions are also regulated by the Financial Services Authority (FSA) which oversees how providers and advisers must deal with you. And finally, because home reversions involve the sale of property a third level of extra consumer protection is given by UK property law, which governs the relationship with the provider and their obligations towards you.
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So what type of people are home reversion schemes most suitable for?
Well it really boils down to your thoughts and concerns. As a guide a reversion might be more appropriate for someone who falls into some or all of the following categories:
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- Customers who want to specifically avoid debt – a home reversion plan is not a mortgage & cannot therefore be repossessed
- Those concerned house prices won’t keep going up – the risk of falling house prices is passed to the provider
- People in good heath and confident that they may live for many more years to come (for example there may be a history of longevity in the family) – generally the longer you live the better value a reversion becomes
- Anyone wanting to the peace of mind of knowing that if they need to in the future, they can access the maximum cash from their remaining equity – some providers will guarantee to always release further funds until 100% of the property is sold
- Clients wanting to guarantee an inheritance for their estate – for example if only 25% of the property is sold, the estate will inherit 75% of its value after costs
- Those wanting to release more cash from their property than they can by using a lifetime mortgage
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Naturally home reversion plans are not for everyone. Generally you will only be eligible to take a reversion plan if you are 65 or older. Ideally, to get the better rates you would need to be over age 70.
As reversions are a long term commitment they should not be considered if you intend to repay the money released at some stage in the future (for example if you’re expecting an inheritance).
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If you are in poor health or expect to have below average life expectancy then you may not get full value from a reversion either. However, we do have access to products now that do offer an impaired life (poor health) facility & therefore can provide an extra lump sum for this reason.
For those unfamiliar with how a reversion works there is understandably a little concern about giving up all or part ownership of your property.
The reality is that the terms and conditions of a reversion (ie the “small print”) are similar to that of equity release and your right to privacy and freedom to live in your own home are not affected.
Usually with a home reversion you are granted a lease for life to live in the property for as long as you wish to. And this important legal arrangement is recorded by HM Land Registry much the same as a leasehold flat or house is. So although you may have sold all or part of the property to the provider it still very much remains your home.
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The decision to release equity from your home using a home reversion plan or a lifetime mortgage is an important one and you will need specialist advice from a Financial Adviser in order to do so. They can talk to you about whether equity release is right for you and if it is what sort of product best suits your particular needs.
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To obtain further information on Home Reversion schemes, please contact an Equity Release Supermarket adviser on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
Tags: equity release, Equity Release Adviser, FSA, home reversion, home reversion plans, home reversion schemes, impaired life, inheritance protection, lifetime lease, lifetime mortgages, lifetime tenancy, SHIP
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Wednesday, December 1st, 2010
On a daily basis we get serious financial queries from people looking to alleviate their money woes in retirement. This could be due to a number of lifestyle issues,; perhaps due to a lack of pension provision over the years, divorce, business failure, the list is endless.
However, to all these scenarios equity release can potentially be a saviour in one way or another. This is why it is so important that advice from a qualified equity release adviser is sourced.
From an equity release advisers point of view it gives us most pleasure to see how life changing equity release schemes can be to clients & the benefits they bring.
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Equity release is specifically designed for homeowners who want to release capital against their homes. If you have a situation that requires a capital lump sum to resolve the cash flow problem, then equity release schemes may be the solution.
However, which is the right equity release depends upon your requirements & attitude towards your beneficiaries.
In general, all equity release schemes will provide some form of tax free lump sum, but it is the method of its withdrawal that will determine the most appropriate equity release scheme that is correct for you.
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Criteria to qualify for equity release
If you want to opt for equity release then the youngest age of the homeowners must be over 55 years of age. In addition to this, your main residence must be worth a minimum of £60,000 & if any secured debts are outstanding on the property, then they must be repaid at completion of the new equity release plan. Therefore, unless there are savings to cover the repayment of the mortgage, then sufficient funds need to be raised on the new equity release plan to redeem the existing mortgage.
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How much equity can you release?
The cash lump sum received depends on various factors. These include your age, the value and your health situation. The scheme you choose can also affect the amount of receivable money. The older the age of the applicant, the greater the potential equity release available. The higher releases are often found on home reversion schemes which is where you sell a percentage of the property to the home reversion company.
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Is the money tax-free?
Yes, the lump sum money which you will receive against your home will be tax-free as it is classed as a withdrawal of capital. However, what happens to these monies next will determine whether these equity release funds remain tax free.
Once, the tax free lump sum is received from the solicitor & placed into the clients bank account, then if you are a basic rate taxpayer or higher, then you will be taxed at source on the interest generated. If you are a non-taxpayer then remember to have Inland Revenue form R85 completed, which will allow the bank or building society to pay interest with NO tax deducted.
The fact the equity release cash lump sum is tax free on receipt means that the funds should go further long term & allows you to spend the cash in various ways. The list for this is endless but most popular prove to be debt consildation, home improvements, buying a new car or go on a holiday or pay off outstanding debts.
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Will you own the property?
If you have opted for a lifetime mortgage scheme, then the property will still be 100% yours, albeit the equity release company will have placed a legal charge on the property & lodged it with the land registry. This protects the provider in that when the property is eventually sold, they will have first bite of the cherry & recieve the original cpaital borrowed, plus compounded interest to that date.
In the case of home reversion plans, the whole or a part of your property will be owned by the lender. Therefore, dependent on how much of an equity release cash lump sum is required, will determine the percentage of the property that needs to be sold. This could be as little as 10% or even as much as 100% of the total property value. Obviously, if 100% of the property is sold then you will forfeit certain rights. These would include there being NO inheritance to pass onto any potential heirs, no equity to negotiate on if you want to upgrade to another property & you will require the home reversion company to approve any building work or changes to the property you require.
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Please think carefully before entering into any long term equity release mortgage arrangement. The equity release market is highly regulated by the financial services authority (FSA) with advise not only coming from an mortgage specialist such as Equity Release Supemarket, but also from a legal representative which will ultimately by your solicitor.
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To discuss your equity release options further & to request a free initial NO obligation financial planning service meeting, then contact the Supermarket team on 0800 783 9652 or email admin@equityreleasesupermarket.co.uk
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Tags: equity release, Equity Release Adviser, equity release schemes, home reversion, home reversion schemes, impaired life, lifetime mortgage schemes, lifetime mortgages, Roll up lifetime mortgage, SHIP
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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.
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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.
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- 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.
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- 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.
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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
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Thursday, October 14th, 2010
Signs that the equity release market is beginning to spark into life again, can be evidenced by the re-emergence of a former lender in the market.
more2life have joined forces with annuity specialist Partnership assurance to re-launch their impaired life roll-up lifetime mortgage plan.
Incorporating an impaired life facility & protected equity guarantee, the more2life equity release plan can be seen to be opening a niche market for itself. The impaired life facility means that depending on health & lifestyle, a higher than normal tax free lump sum can be achieved, should serious health issues be present.
The more2life equity release plan has been designed with three scenario’s in mind: -
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- Enhanced plus – industry leading maximum release, impaired life product
- Enhanced protected – impaired life plan with ‘protected equity guarantee’
- Protected plan – older applicants looking for a ‘protected equity guarantee’
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Pitching the enhanced plus plan at the maximum release end of the market means that should the applicant qualify on medical grounds, they would have the highest equity release lump sum currently available. This would even surpass the current Aviva Lump Sum Max product, although this would be at the expense of a higher interest rate with more2life.
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The following percentages are the maximum releases available on the Enhanced Plus: -
Age 55 23%
Age 60 28%
Age 65 33%
Age 70 38%
Age 80 48%
Age 90+ 54%
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For example, an applicant aged 65 with a property valuation of £250,000 & meeting the underwriting criteria, can release a maximum of £82,500 on the enhanced plus plan.
The interest rate for this product will be 7.49% monthly.
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The second product – ‘enhanced protected plan‘ is also based on health & lifestyle grounds & again can provide an enhanced lump sum. However, to qualify for this equity release scheme the health situation will not be a serious as the enhanced plus. The interest rate for this plan is lower at 6.99% monthly.
Another feature of this plan is the ‘protected equity guarantee’ which is included & guarantees a percentage of the property for the children/beneficiaries on the eventual sale of the property.
The guarantee works as follows: -
Should the overall facility available be £80,000, yet only £40,000 is taken, then 50% of the final sale value will be protected on sale.
This can be an essential tool for applicants who wish to ensure that a guaranteed inheritance is passed onto their children.
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The final option is the ‘protected plan’ which has no impaired life facility , but does include the protected equity guarantee. The interest rate is the same as the enhanced protected at 6.99% monthly.
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In summary, depending on whether the maximum lump sum is being sourced, or one is looking to take equity release but still guaranteeing an inheritance for their children, then one of the three more2life equity release schemes can benefit.
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If any of these more2life plans would be of interest to you, please ring the Equity Release Supermarket team on 0800 783 9652 or email mark@equityreleasesupermarket.co.uk
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To request a quote on the more2life enhanced plans please click here.
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Tags: equity release, equity release schemes, impaired life, inheritance protection, lifetime mortgages, maximum lump sum, more2life, protected equity guarantee, Roll up lifetime mortgage
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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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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, 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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