Equity release schemes are eagerly pursued by those who look forward to securing their future during retired life. After all you have worked hard all through your life and you need to take refuge in an appropriate equity release scheme that can bestow a great amount of financial freedom to you. Once you have chosen the right kind of equity release scheme, you can enjoy a quality life with your near and dear ones, leave the worries of slogging for money even during the old age and also realise all those that you have missed out in your life. Thus, once planned well, a suitable equity release scheme can help you immensely with comfort and peace of mind.
In the first place, it is important to understand the different kinds of equity release schemes. The primary source of information on equity release schemes is your local financial advisor who is knowledgeable in this domain. Also, you can learn about them from some dedicated websites specializing in this arena and offering a good amount of reliable information on this. Some websites also give highly comprehensive information on different service providers and the various deals and schemes available with them. Make a thorough comparison and land on the right scheme.
The two main kinds of equity release schemes include life time mortgage and home revision plan. Lifetime mortgage is all about taking out a mortgage in order to secure your property. This scheme can be utilised only by those who are of the age 55 and above. This is different from the regular kinds of mortgages in the way you will not need to make any repayments as long as you are alive. In this method, the interest attracted by the property is also added to the payout, but is paid only when you choose to move out of the property or pass away. Once you go for a lifetime mortgage, you will lose zero property ownership. If you choose to sell the property, you can do so. Once the debts are cleared, you or your representative will be given out the remaining money. In this method, you need not sell the legal ownership and you can choose to live in the property as long as you wish to or as long as you are alive.
Home Reversion Plan pertains to the arrangement under which you sell a part of your existing property or even all of it to the home reversion provider. You will be given the right to live in the same house. The provider will pay you either in instalments or in bulk as per your preference. You have to insure and take care of the property in the course. Upon your death the property shall automatically be passed on to the company. The company shall take away the share from the sale price of the property and pay the remaining to your successors. The payment you receive under this arrangement depends on your age and gender. If you are not selling the home, then you can take advantage of the value rise of your property.
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