Making a plan for retirement can be tricky and challenging. There are a number of things to consider and certain questions regarding eligibility that always crop up.
Equity release schemes can be confusing and hence one should always opt for independent financial advice from companies like Equity Release Supermarket.
Occasionally there can be doubts about one’s eligibility that can often deter people from enquiring about equity release schemes. However, if one has any doubts the help is close at hand.
Mentioned below are some frequently questions Equity Release Supermarket get asked regarding equity release schemes.
What are the eligibility criteria to qualify for equity release schemes?
Equity release is a scheme that was designed to benefit retired individuals. Therefore, the minimum age requirement for an individual to be able to opt for a the most popular option which is the lifetime mortgage scheme, is 55.
On the other hand, the second option which is the home reversion scheme, requires an individual to be at least 65 to qualify.
The property value upon which the equity release scheme is to be based upon should be valued over £70,000.
Who takes ownership of your property?
Well that would depend on which type of equity release scheme you decide to opt for.
With a lifetime mortgage you always remain 100% the sole owner of your property. This type of equity release scheme gives you the value for your property without you losing ownership.
Home reversion schemes require you to sell a part or all of your property to gain the benefits. Therefore dependent upon how much of the property you sell to the reversion company, will determine how much ownership you actual retain. For instance if you sold 60% of the property value, then you will still retain 40% ownership for yourself & ultimately your beneficiaries.
Do you have to pay for the loan?
Equity release schemes differ to residential mortgages as you have NO monthly payments to make. Your property is mortgaged with the equity release company & your loan is repaid by selling the property once you have passed away or moved into residential care.
The money has to be repaid by your beneficiaries or executors within 6 to 12 months, dependent upon the equity release scheme taken out. The interest is continually applied on the property until the loan is eventually repaid.
If you feel that you need advice on which equity release scheme is suitable for your situation, please ring the freephone number 0800 678 5159 or email email@example.com.