There are still many doubts in people’s mind regarding equity release. Many people stay away from such schemes because they believe that they are not eligible to opt for one or fear of the unknown. There are some who think that they have to sell their property or that they will lose the ownership. To clear some of these doubts, read on.
Who is eligible?
Equity release is a scheme to benefit older people. The minimum age of a person to qualify for a lifetime mortgage is 55. To qualify for a home reversion scheme, a person should be 65. A person cannot qualify for equity release if they have a property valued below £70,000.
What about property ownership?
After opting for equity release schemes, you will still be the owner of your property. Equity release gives you the value for your property without you losing ownership. With lifetime mortgage schemes, you have complete ownership. On the contrary, with a home reversion equity release scheme you are required to sell all or a part of your property.
When is this loan repaid?
The loan is repaid after selling your property. This property is mortgaged with the lender and hence is sold after your death or having to move into long term care. The money has to be repaid between six to 12 months, dependent upon the equity release lender. The interest is continued to be added to the loan until the property is eventually sold.
Initially, your property will be surveyed and then valued accordingly. This figure will determine how much can be borrowed initially, or if a drawdown scheme how much of an overall cash facility will be provided by the equity release company.
This scheme is meant for senior citizens to enjoy life to the full without depending on anyone.
To speak to one of thye Equity Release Supermarket specialists call0800 678 5159.