Do you know the most common misconception among today’s retired professionals? The majority thinks that nothing can beat pension plans that can assure financial stability as well as lifelong security. Instead, there is a superb financial scheme in the name of equity release that has allured a lot of retired professionals till date. However, what most retirees question today is whether equity release applicants are required to quit their properties to enroll in these plans. In reality, the answer is ‘no’.
Equity release – is it lucrative?
Nearly 95% of the retired personals in the United Kingdom either apply for lifetime mortgage schemes or home reversion mortgage plans every year. Well, if you are one of them, you can release a certain portion of the equity against your home and keep earning on a regular basis till the period you mention in the contract. Yes, of course you can continue to stay in your own property. However, if you wish, you can always relocate and even carry the plans along with you.
As mentioned earlier, lifetime mortgage has emerged to be a lucrative equity release plan in the last few years. So, if you are planning to take up this plan, here are some points to keep in mind. Take a look:
- Since the equity you release along with the outstanding interest will be repaid from your property after your death, lifetime mortgage will lessen your property value as well as the amount you will be passing on to your beneficiaries. So, it’s better if you talk to your property appraiser prior to signing the contract.
- Conduct a market research extensively. Although it’s true that equity release has brought back happiness and lifelong security to numerous retirees, it might depict a different story for you. You might not be happy with the current interest rates offered by the equity release providers. Therefore, research well and make sure that you talk to someone professional who can help you know about the present scenario on equity release.
- Talk to your family members. As mentioned earlier, equity release is a scheme that relates to your property. In fact, there are several schemes where you will be allowed to sell a certain portion of your home. Now, this might not be entertained by any of your family members. So, talk to them and confirm whether they agree with the terms and conditions of the schemes.
How can you benefit from Equity Release?
- A flexible scheme assuring one to earn lump sums without paying taxes
- One can utilize the cash no matter what is the reason
- One will not have to relocate
- There is an option of guaranteeing inheritance for one’s family members
- Applicant can move to any property without paying any penalty
How an Equity Release calculator can help you?
If you are not able to calculate the right amount of releasable equity against your home, using equity release calculator will surely serve your purpose. For this, you need to insert the following details:
– Present age of the applicante
– Type of the property
– Approximate value of the property
– Location of the property