If you are over 55 years of age and own your own home then you can enjoy the benefit of equity release schemes. With the help of these schemes, you can release a lump sum amount of cash against the value of your property. Some equity release schemes also allow you to get a regular income from the value of your home.
Due to different market needs, three different types of equity release schemes have been introduced in the market. These include:
- Lifetime mortgage
- Drawdown lifetime mortgage
- Home reversion plan
Out of these above mentioned schemes, the lifetime mortgage is preferred by almost 90% of homeowners. So if you have decided to release the value of your home then make sure that you consider the features of a lifetime mortgage scheme.
What is a lifetime mortgage scheme?
This is one of the most popular equity release schemes because it allows homeowners to release a lump sum amount of cash against their property. The interest and released amount is repaid by selling the estate when the homeowner passes away. This means that you can enjoy the cash and live in your home for the rest of your life.
Filling in the forms and understanding the documentation to release the value of your home should be under the guidance of an equity release consultant or advisor. He/she will consider the value of your home and select the right plan for you. Once you get this tax-free cash then you can spend it in clearing your mortgage, improving your lifestyle or on home improvement projects.
To know how much cash you can release against the value of your property, you can use an online equity release calculator – click here to see how much you can release.