Guide To Home Equity Release Plans
Home equity release could be the key to unlocking the money tied up in your home and could mean the difference between a carefree, enjoyable retirement and a constant struggle to pay the bills.
Home equity release plans allow you to boost your income substantially by freeing up all or part of the value of your home. There are three main categories of home equity release and within each of these there are many different plans. They are lifetime mortgages, drawdown lifetime mortgages and home reversion plans. Each type of home equity release plan is summarised below to give you an idea of what’s available. Talk to a home equity release specialist before deciding which plan to go for.
Lifetime Mortgage
These types of home equity release plans allow you to release a lump sum of equity all in one go, from the value of your home. Although it’s secured on your property, there are no monthly payments to make and it allows you to own and stay in your home for as long as you choose. The amount you have released, plus interest, is repaid from the proceeds once your property has been sold when you die or move into residential care in later life.
Drawdown Lifetime Mortgage
This home equity release plan is similar in many ways to a lifetime mortgage but it also offers added flexibility as you can receive your cash in instalments. These instalments may be monthly, quarterly or annually. Your independent home equity release specialist will be able to tell you more.
Home Reversion Plan
These home equity release plans allow you to sell all, or part of your home for a tax-free cash lump sum. However, a legal agreement guarantees that you can continue to live in your home usually rent-free for as long as you choose or until you die. The amount of money you’ll receive will vary with age. The older you are the higher percentage of cash you will be able to release.
Who Qualifies For Home Equity Release?
Generally, you and your partner must be aged 55 or more. Your home must be worth £50,000 minimum and you must be able to clear any outstanding loan secured on the property from your home equity release funds.
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I think I have decided on a home reversion plan as my children do not require that I leave them anything when I die. What greater percentage of the equity can I typically release? How much lower a valuation (%) can I expect?
[Reply]
Equity Release Adviser Reply:
July 21st, 2009 at 10:18 am
Hi
Thanks for your post here on our news blog.
If you would like find out whether you qualify for equity release and how much you could raise please feel free to contact us either by telephone on freephone 08080 10 10 10, or via our website http://www.agepartnership.co.uk by requesting a callback or fill in your details to receive our brochure by post.
I hope this helps and we look forward to speaking with you.
Kind Regards,
The Age Partnership Team
[Reply]
carole smale
17 Jul 09 at 9:12 am