Equity release schemes are a financial vehicle that can provide you with access to the equity that you have built-up in your home. There are two types of equity release schemes available – a ‘lifetime roll-up’ & a ‘home reversion scheme’.
With the Roll-Up scheme, the need to sell your property is completely eliminated, whilst with a Home Reversion Scheme you can sell a percentage of your home in order to potentially raise a greater amount of tax free cash.
The roll-up lifetime mortgage scheme is available individuals above 55 years of age, whilst home reversion schemes commence at age 65.
Equity release schemes are great means to use the capital invested in their home. At the same time, individuals can still continue to stay in their home either until they have either died or moved into long term care. At this point the property will need to be sold. Dependent on whom the equity release lender is, will determine how long the beneficiaries have to sell their parents property. This period can range from 6 months with LV= & upto 12 months with equity release companies like Aviva & Just Retirement.
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Do you qualify for an equity release scheme?
If you own a property and your age is over 55 years, you can become eligible to take part in a range of equity release schemes. Your property must also be of an acceptable structure & type to the lender & have a minimum property value of £70,000.
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Why should you obtain independent equity release advice?
As there are regular changes in financial services and legal regulations from time to time, you must discuss your situation with an independent financial adviser such as Equity Release Supermarket. They have access to the whole of the equity release marketplace. Their advice would involve gathering details of your current financial situation, understanding your objectives & then recommending suitable equity release schemes for you. With your agreement they can complete & process your equity release application through to the final stages when the funds are released by the lender to your legal representative.
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Why opt for equity release schemes?
Equity release schemes are great for people looking forward to obtain extra money in their life. The equity release schemes help individuals who are looking for tax-free means to access their money to help their children get on the property ladder by way of their initial deposit.
Retired individuals may also even help themselves in purchasing a new home. This can be when they wish to potentially move upto a property that is more expensive than the one they are currently living in. Equity release schemes can provide the cash shortfall, (like a mortgage does) to bridge the difference between the purchase & sale price of the two properties.
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Irrespective of the reason, when investing in an equity release scheme, opting to take help from an independent professional financial advisor is a wise decision.
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Call 0800 783 9652 for independent equity release advice
