There are numerous financial solutions in the marketplace that are available today. While most financial products often include making repayments to lenders, there is one solution to which this does not apply.
Equity release schemes are one kind of financial instrument where homeowners can release equity from their properties to live more comfortably. However, these schemes are only applicable to those over 55 years of age & with a property that is valued above £60,000. Equity release schemes are therefore ideal for those who are asset rich but maybe income poor.
Here are some of the benefits that these schemes offer: -
- Equity release schemes do not include any monthly payments
- All SHIP regulated schemes have the no negative equity guarantee which ensures that you can never owe more than the worth of the property
- Homeowners can continue to live in the property for the rest of their lives
- Debt on equity release schemes is repaid only when the property is sold which is either when they move into long term care or pass away.
These schemes can either give you a lump sum or monthly payment based on the preferences of homeowners. It is important to understand that the amount gained from equity release schemes will depend on the property & the age of the owners.
Another aspect of equity release availability is the condition of the property. It is for this reason that homeowners are encouraged to keep their property in good condition so an optimal value can be realised.
For futher information on property types & equity release schemes please contact the Equity Release Supermarket team on 0800 678 5159.