If you are in a dire financial problem after your retirement period hits you, then, one of the best ways to lead a tension free life is to opt for an equity release. It ensures a steady income to you during your after – retirement years. You do not need to take any further tension to get the much needed fund after retirement, which will help you to sustain your life. Applying for an equity fund release is not an arduous task but one that checks your eligibility and few other aspects of life.
How can you qualify?
What you require to qualify for this is that you need to attain an age of a minimum of 55 years and should also own your property so that you release the equity funds. It is a good method of using the money which is currently tied up in your house for the benefit of your after retirement period of life. You also have the opportunity of using the money as your source of income without parting with your property for any other reasons. Simple debt solutions like equity release can be considered during the severe problems of debts after one reaches his or her retirement phase of life.
Lifetime Mortgages
You require knowing that you have two possibilities that you can use. One is home reversion plans and lifetime mortgages. With lifetime mortgages, you are free from paying any money on a monthly basis wherein your property is fully insured. This comes with a lot of benefits as the increase in your property value still comes to your advantage. You have the option of a fixed rate plan and also additional borrowing is possible. However, one thing that you need to remember is that early repayment penalties might be applicable. Your tax position might get affected and also the amount increased is often less than with house reversion plans.
Home Reversion Plans
You can expect a regular income out of home reversion plans. It offers you with a lifetime lease which guarantees you staying in your property for the rest of your life. That way you will be drawing benefits from increases in the value of your property. It means the older you are, the more amount of cash you will be able to release and thereby ensures more money as compared to a lifetime mortgage. You need to remember here that in case you sell your property, your estate will not be receiving any inheritance and you won’t completely own our property.
Benefits of Equity Release
Equity release plans like this offers old people adequate cash allowing early retirement and no pension loss rights. You also have the possibility to get the fund which you require for repairing and modernizing your house. It increases the value of your property. When you are in debt, this is one of the best and simple debt solutions that can help you clear out your debts. SO, what are you waiting for? Talk to a financial expert now!
