Equity release schemes are preferred by an ever increasing number of retired homeowners, as they allow people to release tax-free cash against their property.
If you are 55 or over and own your own home then you are eligible to release some cash to boost your finances in your retired life. Home reversion plans and lifetime mortgages are the two main types of equity release schemes.
To release cash against your property, you must have little or no mortgage and the value of the property should be more than £70,000. Once you have received the lump sum of cash then you can spend it anyway you want. Compared to other loans or schemes, equity release schemes offer various benefits.
Advantages of equity release schemes
One of the best features about equity release is that it allows you to live in your property even after selling it against the lump sum amount of cash. Also, you can transfer the equity plan to another property without paying any financial penalty. By opting for an equity release scheme, you do not have to worry about repayment as it will be done on death of the second owner or moving into long term care.
As equity release schemes offer tax-free cash, you can spend it in different ways such as:
- Buy a second home or a car
- Repay outstanding debts
- Invest in home/garden improvement projects
- Go on a holiday
- Improve your retired lifestyle
If you want to know the amount of cash you can release then an online equity release calculator is the best option. Once you have applied for equity release, the whole process will take around 6-8 weeks. At that point you will then receive the tax free cash & it can be paid by cheque from your solicitor or it can be sent by telegraphic transfer directly into your bank account.
The process from application stage will require the services of an experienced equity release solictor, your independent equity release adviser & the equity release provider.
Your adviser will liaise between all parties concerned in order that the application runs smoothly & can ensure that any issues can be resolved quickly.
For these services the adviser will usually charge an advice fee which is deducted on completion of the equity release scheme. To understand the equity release process in further details including the step by step guide click here.
Equity Release Supermarket advisers can help you calculate the amount you require & the equity release scheme that best meet your individual requirements.
Please call freephone 0800 678 5159 to speak to an qualified adviser today.