More often than not, we see retired individuals depending on someone or other in their old age. If you are retiring soon, it is advisable for you consider equity release as an option. It not only ensures that you can enjoy the benefits of the equity in your home, but also gives you a peace of mind and much needed relaxation in old age. This scheme has been designed for retired individuals so that they can enjoy their independence.
Things to consider before opting for equity release
If you are opting for equity release, you must own the property which you intend to put up for mortgaging. The minimum age requirement for a lifetime mortgage scheme is 55, while the requirement for a home reversion scheme is 65.
Once you opt for equity release, your property will need to be surveyed and an estimate valuation will be made. The minimum market value for an equity release scheme is about £70,000. If the final market valuation of your property is below this amount, you are not eligible for equity release.
Types of equity release schemes
Lifetime mortgage schemes and home reversion schemes are the two main types of equity release schemes.
Home reversion schemes involve the selling of some or all of your property. The greater the market value of the property, the more benefit you can enjoy. On the other hand, a lifetime mortgage scheme does not require you to sell your property and this is the major advantage.