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Equity release – freedom from financial worries

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.

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.

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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Equity Release To Benefit From Novembers New £10,000 Pension Credit Limit

Thursday, October 29th, 2009

This November, under the budget changes made in April, sees the pension credit limit being raised from £6,000 to £10,000. The effects of this would be felt by over 500,000 pensioners on modest incomes & should result in additional income of upto £8pw.

The current capital disregard limit of £6,000 has been present for the past decade. Previously, any savings above this level of savings reduced the amount of benefits a person would get from pension credit.

However, The Chancellor – Alastair Darling has stated this is to change from November. This increased limit to £10,000 will benefit pensioners on low incomes in different ways.

One will be the direct benefits will be in the pocket.

However, a further implication on this will be on people considering equity release. Previously, anyone receiving pension credit with savings over £6,000 & considering equity release would lose £1pw for every £500 over the limit they went.

Subsequently, with this limit now being increased to £10,000, results in the additional £4,000 allowance providing people with upto an extra £8pw.

This was a major factor in any equity release advice provided. As part of any advice & fact finding process the adviser should ascertain whether means tested benefits are being received.

However, the resulting advice would limit any equity release to the provider minimum of £10,000. This being above the £6,000 limit could result in a loss of benefits, unless immediate capital expenditures were being made or an Income Assessment Period (AIP) was still in force.

Therefore, Novembers increase to £10,000 will rule out this potential loss of benefits on such withdrawals & as a direct consequence will result in more pensioners confidently taking out equity release schemes.

Equity Release Supermarket welcomes such moves & if anyone wishes to receive further information on this subject should contact Mark Gregory on 0800 783 9652.

Tags: Add new tag, benefits, equity release, equity release schemes, home reversion, home reversion schemes, lifetime mortgages, means tested benefits, pension credit
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