Equity release is probably one of the best ways to gain income or capital that has been locked in a home. This process is ideal for anyone who owns their own property. It can be carried out in two main ways. One method is through home reversion which includes selling some of your property to free up valuable funds. The other method is through a lifetime mortgage where a loan secured on your home is made by the lender.
Regardless of which method you choose, equity release can offer many benefits.
Keep your home
In previous years, downsizing could mean having to move out of your home and start all over again. However, this is not the case with equity release. This lifetime mortgage scheme allows you to keep your home, which is possibly one of the best benefits. You are able to carry on living in your property with no monthly mortgage payments, thus not affecting your financial stability. The equity release scheme is eventually repaid from the proceeds of the sale of your property. This event is usually upon death or moving into long term care.
However, if the beneficiaries can come up with their own funds in order to repay the lender then theoretically they can then take possession of their parents property. This could be valuable for family reasons, particularly if they wish to use the parents home as their new main residence due to size. It could also be repaid by the children for investment purposes should they wish to rent out the property, thereby creating an additional income source to assist them financially.
Enjoy a better life
Equity release will give you a good source of income or capital that can be used to make your retirement years more comfortable. This can be used to buy a holiday home or even for taking regular holidays overseas. Besides these, the tax free cash gained from equity release can also be used for meeting more important needs like home renovations or buying a new car.
Under most circumstances, equity release provides a guaranteed cash flow throughout your life. One of the best things about this kind of income is that it is usually free of tax so you can fully enjoy the fruits of your own hard work.
For a list of valuable reasons to generate capital or income in retirement click here to visit the Equity Release Supermarket website.
Alternatively contact the Equity Release team on freephone 0800 678 5159.