The term equity release is given to such schemes that will facilitate certain homeowners to secure a large sum of money that's tied up in their property, and all this is possible without having to make regular monthly repayments.
As a result of the financial descent an increasing number of homeowners over the age of fifty five are turning to lifetime draw down mortgages to accomplish a more agreeable retirement, and to open the door to new and exhilarating prospects in their ensuing years.
An equity release scheme will grant you the chance to raise money from your property as either a lump sum or regular earnings, or even both.
You and your partner can remain living there during the chosen plan until you both die or decide to move out.
The value of your household and your age are the key factors in the amount of equity you are entitled to release from your property.
The age for equity release is limitless, and the truth of the matter is the older you are the more likely you will be able to release a greater amount of equity from your household.
These schemes become accessible to anyone who owns their own home and is over the age of fifty five.
Tax Free Equity Release The equity you have in your property belongs to you therefore any cash you decide to release is completely tax free and unlike conventional mortgages you won't have the hindrance of saving to make monthly payments.
All the capital gained will be yours to do as you please.
You can spend it on luxurious items you have always dreamed of or you could do whatever you desire allowing you to live out the rest of your days in comfort and with added security.
Home equity release plans can be custom made to adapt to your individual needs and there are numerous schemes out there from which to choose from.
Types of Equity Release The three different types of equity release schemes that are attainable have a small number of variations to each plan.
The three plans are Drawdown Lifetime Mortgages, Home Reversion Plans and Lifetime Mortgages.
The home reversion plan entails selling all, or part, of the possession of your property, whereas the drawdown mortgage and the lifetime mortgage will enable you to take out a new loan that will be secured on your home.
In return, the equity release plan you choose will reward you with a lump sum of money or a dependable income.
When releasing equity from your property it's essential that you choose a plan that fits your individual needs.
You should always seek advice from an independent equity release specialist.
They will research the market for you and guide you through any decisions you will have to make.