Advantages of Equity Release

Equity release is a scheme which allows you to draw cash on the equity built on the home that you own. The equity release is of two types, lifetime mortgage and home reversion. These two schemes is available only if you are and above 55 years for lifetime mortgage and 60 years and above for home reversion plan. Thus, this allows you to have a regular source of income in case you do not have any, or you can also ask for a lump sum of money. This plan is only for elderly people. There are many advantages of equity release and some of them are:

  • If you go for equity release, you can earn a substantial amount of cash in the form of lump sum amount or as a regular income or both.
  • There are plans in which you do not have to make any repayments or any payments until unless the house is sold off. However, you may have to pay for some of the initial charges levied.
  • You will have the luxury of staying in your own home until you are alive. This is a great advantage for who want money at the same time do not want to rent out another house.
  • You can take some cash now and take the equity release later. However, this depends on the amount that you take now.
  • You can move out of the home without any liability. However, there may be some restrictions levied which you need to check.
  • This will help you pay off any mortgage or loan that you may have
  • The money you get can be used for home improvement which will further increase the equity of your home.

Along with these advantages there are a few disadvantages as well which you need to know and take care of.