Equity release is an attractive choice for those individuals who are seeking financial liberation. However, it’s interesting to note that Equity Release plans were first became available in the United Kingdom in 1965. Read more info here www.londonqequityrelease.net
When first introduced, the primary objective of these plans was to make a possibility for the individuals who had put resources into property but needed cash to cover certain expenses.
What Is Equity Release?
Equity release refers to a range of products that let you get the cash (equity) tied up in your home if you are above 55 years of age. You can take the money you release in several smaller amounts, as a lump sum or as a combination of both.
Equity Release Options
- Lifetime Mortgage – You take out a mortgage secured on your property provided it is your main residence, while retaining ownership.
- Home Reversion – You sell part or all of your home to a home reversion provider in return for a lump sum or regular payments. You have the right to continue living in the property until you die, rent free, but you have to agree to maintain and insure it.
Equity Release Plans – Pros
- Equity release provides a lump sum, a regular income or both
- Money released is free of tax unless subsequently invested
- You don’t have to move to a new house or sell your home to unlock equity
- They can be used to pay for care bills without having to sell up at what can be a traumatic time.
- No interest payable while you are alive, so you will get a higher income for the same sized loan than with an interest-only mortgage or home income plan.
- The provider of a lifetime mortgage will be authorised and regulated by the Financial Services Authority.
- You may not be able to get a top-up loan later.