If you are a pensioner and you are looking for the key retirement solutions , then equity release might be what you are looking for. Equity release applies to home owners who are looking for a way to release equity from their homes. There are many different equity release schemes. Based on the scheme that you choose, you can either receive a lump sum cash or you can receive a series of payments via drawdown.
In most cases, equity release involves taking a loan against a property. Unlike other loans, equity release does not require any monthly repayments. The money that you receive can be spent however you would like to spend it. One of the greatest advantages of equity release is that you can stay in your home as long as you like & retain 100% ownership of the property.
When applying for equity release, each equity release scheme can be customized to meet your needs. The disadvantage however is that an equity release scheme will eventually decrease the value of your property. However, this can be offset somewhat by any potential increase in the value of your property
A person must be at least fifty-five years old in order to apply or an equity release scheme. You need to own a property that should have a value of at least fifty thousand pounds. If possible, there should not be an existing mortgage on the property. If there is an existing mortgage on the property, it will need to be paid off by the equity release scheme at completion.
The three main types of equity release schemes include: the lifetime mortgages, the interest only lifetime mortgages, and the home reversion plans. Each plan allows you to release cash from your own home. The lifetime mortgages allow you to take a loan against the property, while the home reversion plan gives you the opportunity to sell a percentage of your property. In both cases, you can remain in your property as long as you like.
Many pensioners are skeptical about equity release due to previous adverse commentary, however the fact is that they do not need to worry. The Financial Services Authority guarantees pensioners their safety. In 1991, Safe Home Income Plans also known as SHIP was established to provide home owners with the assurance that they need thus allowing them to apply for equity release.
So if you feel like most that life is for living & you have already discussed equity release with your children, then go ahead & 'live a little'.