As many people in the UK find it hard to maintain a good living, equity release schemes are becoming extremely popular.
Equity release schemes are specially designed for elderly people between 55 to 95 years of age. With an equity release scheme, homeowners can either get a lump sum amount or regular income.
The beauty of equity release schemes is that homeowners can continue to live in their property for their lifetime. When the homeowner passes away, the beneficiaries will sell the property with the lender being repaid from the sale of the property. Once sold, any remaining equity will be passed to the beneficiaries named in the Will, if one has been made. Should the equity release plan holder die intestate, then the net proceeds will be paid in accordance with the rules of intestacy. This happens if the property is sold for a considerably larger amount than what the balance of the equity release is.
Different options of equity release schemes
The reversion companies offer equity release schemes with different options such as tax free lump sum and home income plans. Home income plans are perfect for senior citizens who want their money in the form of a pension. The amount of equity released is distributed as income or pensions for the rest of their life. This would be in the form of an annuity, which is basically exchanging a lump sum in return for a regular income for the rest of your life.
In such cases, if the equity release applicant has poor health then impaired life terms maybe available. which enhance the standard terms normally paid. This is due to the fact that if the annuity provider considers that life expectancy is potentially reduced due to health reasons, then they can increase the lump sum normally available.
The amount that you will receive via equity release scheme will depend on several factors such as your age, the type of property & its current market value.
If you are looking for the best way to generate income during your retirement, equity release can be an excellent solution to assist the enjoyment of your retirement years.
To establish whether you will be eligible for an equity release with enhanced terms, please contact the Equity Release team on 0800 678 5159 or visit the Equity Release Supermarket website byclicking here.