If you are planning to help yourself out with extra security for your family or willing to go for a smoother retirement plan, in that case, equity release is probably the thing you are looking for. Equity release is a mean through which you can help out yourself preferably at an old age by receiving tax-free capital from the price of your house or estate without actually moving out from it.
There are a number of schemes for equity among which the two most popular one is:
- Lifetime Mortgage: In this case might go for a opt for a mortgage on your residence or estate while still being the owner of it. The amount asking with the prescribed interest is then paid back at the time of the death of the owner or if he seeks to move out of the residence.
- Home Reversion: Here is tending to sell a part of or the complete residence of yours to a home reversion dealer for a capital amount in the form of regular payment or full lump sum. And you can continue living in that house till your death or in case you change your mind provided that you are supposed to take the complete authority and responsibility of the house in the form of its repairing and maintenance expenses.
Apart from these two there are also vivid schemes with their personal assets which can be found here – http://www.londonqequityrelease.net/
Things to Be Considered in Case of Equity Release
- You might opt for lifetime mortgage once reaching the age of 55.
- You get the fixed interest rates with no negative equity guarantee.
- It’s way more expensive while releasing the equity than selling the property.
If you tend to seek a secured life especially at the dawn of your life without actually moving out from your residence, then equity release will emerge to be your best friend.