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What Is Equity Release And How Do You Qualify For The Scheme?

By Mark Gregory on October 11th, 2010

Equity release schemes are beneficial to all those retired individuals who want to maintain their standard of living even after retirement.

 

What is equity release?

The term ‘Equity’ can be defined as the value of your home less any outstanding debts or mortgages. This equity that is tied up in your property can be released as cash from your property with an equity release scheme. You can spend this money on anything you wish with the most popular being: –

  • Debt consolidation such as repaing a mortgage, loan or credit cards
  • Home improvements such as new windows, conservatory decorating etc
  • Gifting funds to the children – this could be for getting them on the property ladder or assist their business
  • Holidays such as foreign cruises or days out
  • Help with everyday expenses & improve the daily quality of your retirement
  • To pay for an impending medical operation.

 

With all equity release schemes you do not have to make any payments till your property is sold after you die or when you move into long-term care. The best thing is that you remain the owner of your home and enjoy attractive cash benefits.

 

How do you qualify for an equity release scheme?

You need to meet certain criteria to be eligible for an equity release scheme.

They are:

• You should be between 55 and 95 years of age
• You should be the owner of your property
• The minimum value of your house should be £70,000
• You should have little or preferably no outstanding mortgages. All mortgages should be cleared when the equity release scheme is started
• Your house should be freehold or leasehold and the remaining lease period should be at least 75 years.
• The house should have been constructed using standard building materials.

 

You should consult experienced indendent equity release advisers to get the right advice on equity release schemes. A professional can tell you whether the scheme is appropriate for you or not. Read all the documents carefully before signing. Equity release is probably the biggest financial decision you will ever take.

 

If you have a finnacial obligation & feel equity release could be the solution, speak to the experts by contacting Equity Release Supermarket on 0800 678 5159 or email mark@equityreleasesupermarket.co.uk

 

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