Are you thinking about how to manage finances during retirement period?
If your answer is yes, then equity release is an ideal solution for you.
If your age is more than 55 years and you own a property, then equity release could unlock your money for your retirement.
Equity release schemes are designed in such a way that they allow the homeowners to get lump sum money or regular income against their home.
One of the best things about equity release schemes is that you can get the value of your home without leaving it.
Moreover, equity release schemes offer tax-free cash which can be used in different ways such as:
- You can buy a second home
- Buy a new car
- You can also pay off your outstanding debts
Due to different needs, two different equity release schemes have been introduced in the market.
Home reversion plan – This equity release scheme is calculated on the basis of life and age expectancy. The youngest age for a Home reversion plan is 65. Home reversion plans offer a better deal for much older homeowners who maybe feel that house prices won’t increase greatly in the future. For instance, people who have crossed age 70 can enjoy more benefits than people who are still in their 60’s.
Additionally, people who are in poor health would benefit greatly from a home reversion scheme. As life expectancy governs the amount of release quid pro quo.
Lifetime mortgage scheme – Under this scheme, you can get a lump sum amount of money secured against your property. One of the best things about this scheme is that the money and interest is paid by selling the property when you die or move into a care home. There are no monthly payments to be made, hence it has no effect on your monthly budget.
If you have decided to opt for equity release schemes then hire an independent equity release adviser who will help you in getting the money against your property.