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News Equity Release Schemes – Five Important Benefits

Equity Release Schemes – Five Important Benefits

By Mark Gregory on the 9th November 2010

Equity release schemes are one option available to enjoy the fruits of retirement in a way many would never have envisaged.

Some people are still unaware of equity release schemes and their numerous benefits; here we aim to address those issues.

Maintain standard of living

Immediately upon retirement, there is an evident drop in income. Unfortunately expenses do not.

You may think that saved money during your working life will be adequate for you to live comfortably. Rising inflation & lack of confidence in pension plans might make this difficult. There are other options to consider & one of these maybe to downsizing to a smaller home. Other options available prior to considering equity release would be using any savings, asking relatives for financial assistance, claim any benefits due or if you have a good disposable income there is still the option of an interest only mortgage. The Halifax Retirement Home Plan can assist here.

If you look into equity release schemes, you will notice that you do not have to sell your property. Therefore, you can remain at the property for the rest of your life.

Applying for equity release, enables you to obtain some of the cash value of your property and with a roll-up lifetime mortgage you still remain the owner. This way, you can maintain your standard of living and can avoid the hassle of moving into another house.

Fulfil your needs

Additional cash can help retired individuals to fulfil basic needs as well as allowing them to pursue leisure activities. You may want to clear some debts, go on a long holiday, buy a new house or simply develop new hobbies. Equity release schemes can help you with these things.

The age factor

Age is an important factor when buying an equity release scheme. Your age is directly related to the amount of cash you can get. The older you are, the more you can get. Lifetime mortgage schemes start at age 55 with a maximum release of 20% & run beyond age 90 releasing over 50%.

Home reversion schemes start at age 65 & again go past age 90 with the maximum release being the sale of 100% of your property to the home reversion provider.

No limitations on spending

A good thing about equity release schemes is that you can spend the money the way you want to and there are no restrictions. We would only advocate initially taking an amount which you are likely to require in the first 12 months. The reason for this is that drawdown equity release schemes allow you to take the equity release cash in stages rather than all at once. This ensures that you pay less interest in the long run as you only pay interest on the actual amount you have withdrawn.

Tax-free cash

The cash you receive from the scheme is free of income tax. However, if any funds are placed on deposit then you could pay tax on any interest gained.

To find out whether equity release is suitable for you why not have a free initial consultation with one of our qualified equity release advisers. Call now on freephone 0800 678 5159.

Alternatively, email

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Tags: Qualified Equity Release Advisers, Drawdown Equity Release Schemes, Home Reversion Schemes, Equity Release Supermarket, Lifetime Mortgage Schemes, Equity Release, Equity Release Schemes, Roll Up Lifetime Mortgage, Halifax Retirement Home Plan

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