Release Equity on Your Home to avail Extra income
Equity release helps the persons over 55 years old to receive some tax free money from their property.
It is a great way to get a monthly income after their retirement. The person can take the amount in lump
some or in profitable monthly instalments. Generally people choose the later part.
The equity release pattern is gaining popularity in each passing day. The different schemes of equity
release help the people over 55 to deal with difficult situations. The steady monthly income helps them
to cope up with the rising standard of living and the increasing cost of products. The equity release plans
serve the proper purpose of generating the extra income to meet these demands.
In last few years, hundreds of different insurance companies have entered this field with a prospect of
making more revenues. The competition market has made them to alter the scheme settings to provide
more benefits. They even reduced the interest rate so that the people can enjoy relatively good monthly
It is really hard to deny the fact that every one needs an additional income, especially the elders. They
have to qualify in some sections to avail the benefits. The amount of money that can be generated
depends on three important factors.
- Your age
- The value of tour property
There are mainly two types of equity release schemes which are beneficial for the elders.
Lifetime Mortgage- this scheme allows you to receive money without any initial payments. The amount
depends on the above mentioned important factors. In this plan you continue to live in your house. This
scheme never allows the lender to own your house. You have the freedom to take the money at a time
or in monthly instalments. But if you sell your house or move out, the lifetime mortgages have to be
paid off. In this plan the interest will depend on the amount you borrow.
Home Reversion Plan- this equity release plan enables you to sell a part of your house. In this plan,
you will receive less than the market value of that part of your house but you will continue to live in
the house for the rest of your life. If you ever sell your house then the reversion company will get a
percentage of that sell. The percentage will depend on your age and property value. You need to clear
your existing mortgages to be eligible for home reversion plan.
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