Everyone one dreams of living a relaxed life after retirement. A time which they can spend doing the things they want. Relaxing, reading, travelling, returning to hobbies that were left incomplete in the rat race, gardening, doing thing that make them happy. But, they must also make sure whether they have enough savings or enough pensions to support the kind of lifestyle they want to lead. They also have to make sure whether they have enough money to solve any sort of medical or non-medical crises.
If not they can release equity on their house or property to gather or arrange for immediate funds or money. But there are one cannot release equity without fulfilling certain criteria. The criteria they have to fulfill are as follows:-
- You must be of a certain age (differs from place to place) when you decide to release equity on your property.
- You have to be retired from work.
- You must be the owner of the house or property you wish to release equity on
- The house cannot be damaged or in a bad condition when you wish to release equity on it. If it is then it has to be repaired before you release equity on it.
- The property or house should not have any outstanding debt or mortgage on it and
- At the time of releasing equity the house should have a standard valuation in the market.
On the release of equity on a property one will still gold the ownership of the property till death and still get a lump sum at one time based on the value of the property at the time of equity release or they may get the amount in monthly installments, assuring a flow of money till they die. They will also get the benefit of staying in the house till death. Along with these advantages there are a few disadvantages as well:-
- You will not be able to leave behind the property to any heir or beneficiary and
- Once equity release on property is made you will not be able to sell the property.
However, this can be overcome by either returning the amount received to the company so that you can pass on the property to a beneficiary and you can also release equity on a part of the property and sell the other portion. Another advantage is that the rate of interest is higher for people older. The older you are the more interest you will get on the property.
If you are planning to Equity release on property it is advisable to go to a reputed company so that your property remains in good hands while you’re alive and you still have the surety of getting your money at regular intervals without fail.
Equity release on property is a good way of assuring a good flow of money after retirement and in old age. By this plan there will be no monetary crisis after retirement.
Here the author shares information about equity release on property. The criteria are mentioned. The advantages and disadvantages are discussed. And one of the solutions to monetary crisis after retirement is talked about.