Equity Release – Hope for Elderly

Equity release is a scheme which allows you to take out cash from the home owned by you for the equity that it has built with time. This money can be taken to add to your income, for renovation of home, if you plan to go for a holiday trip, to help your children build property or you can just sit back and watch your family members enjoy the inheritance of the property.

If you have been the owner of your house for a long time, it will definitely be worth more now than it was when you bought the house even if the economy is not so very good. You can avail the equity release even if you have not paid your mortgage completely, but in this case you will have to pay off the mortgage loan or any such loan on your house and the remaining money from equity will be paid to you. This cash you can spend as per your need.

There are two types of equity release scheme, which is lifetime mortgage and home reversion. The minimum age limit to qualify for these schemes is 55 years for lifetime mortgage and 60 years for home reversion plans. One of the benefits of any of these schemes is that you do not need to move out of your home. You can stay in your home as long as you like to and when you move out there will not be any liability.

While taking up equity release you need to know certain things like it may affect your track position, and any entitlement you may have to state benefits. The value of the estate is also reduced so it is recommended that you consult a financial advisor and also your family members before taking up these schemes.