After retirement, life can be quite difficult as you may not be able to spend with the same comfort and ease as you did during your working life.
Thus, you need to look for a source that can offer financial protection to you during your old age. Equity release schemes help the elderly to spend a luxurious and comfortable life after their retirement.
Some facts about equity release schemes:
Mortgage equity release schemes allow homeowners to unlock the equity that they have built in their homes. Homeowners can opt for a lump sum or monthly payment option, depending on their requirements.
One can even get a combination of both. The best part about equity release schemes is that the homeowner can continue to stay in their property.
Additionally, all schemes that Equity Release Supermarket recommend have the ‘no negative equity‘ guarantee built in at no extra cost. These schemes must have this built within if they are to be allowed to be members of SHIP (Safe Home Income Plans).
The no negative equity guarantee ensures that the beneficiaries cannot be left with any debt over & above the valuation of the property. Therefore, should the equity release balance be higher then the sale of the property, then only this value can be retained by the equity release company.
This can be very reassuring from the beneficiaries point of view.
Value of the property
There are certain factors that influence the decision of lenders. The size and value of the property are important factors that lenders consider when offering equity release loans. If your property is in a good and well-maintained condition, lenders are more to make an equity release offer in return.
However, there maybe instances when following valuation, certain conditions could be placed upon within the equity release offer document.
These would usually be classed as essential repairs & the following could be main examples: -
- Damp & timber issues
- Electrical sub-standards
- Wall ties
The amount that equity release companies offer is repaid by selling the property after the borrower passes away or moves into long term care. The amount recovered after selling the property is used to repay the equity release debt including any interest that is built up. If the amount recovered is more than the value of property, a share of the amount is given to the relatives of the borrower in accordance with their Will.
If you are above 55, retired and looking for a solution to generate income, equity release is certainly one of the best options to consider.
For further information on issues regarding property valuations & whether equity release could be made available, please contact Mark on 0800 678 5159 or email email@example.com.