It’s no secret that trying to decide whether having an equity release plan is your ideal financial option can be daunting.
With the numbers of unscrupulous lenders and falsely-advertised sites on the rise every day, you can be confused and end up opting to take out mortgages that don’t favour your circumstances.
Well, after hundreds of hours researching these life-saving schemes, fifteen expert consultations, and more than a hundred consumer considerations, here’s a comprehensive guide that will offer you unbiased and honest information on why equity release might be your best option.
Be sure also to check how much equity you can release with this equity release calculator.
Have a Blissful Retirement by Taking out an Equity Release Plan Today
Equity release isn’t something new in the financial market. It’s a plan with two products which allow you to release equity tied up in your home or property.
One of the products under this plan is the home reversion option. Here you sell your property or a portion of it to your lender. They’ll then give you up to 60% of the value of that property. The interest rates for this arrangement will depend on the contract in place with your lender.
The second product available under equity release is the lifetime mortgage plan. Here the lender will give you a mortgage for the entire property or a part of it. You can choose to clear this amount through a lump sum, or instalments depending on the arrangement you make.
Under both plans when your plan provider decides to put up your estate for sale, and all the money owed collected, the remaining proceeds if any, will be given to your next of kin.
Why Should You Then Take out an Equity Release Scheme?
You’ve probably seen some of your friends enjoy a glass of champagne and margaritas in the sandy beaches of Maui, or some have made significant renovations to their family homes, and you start scratching your head wondering whether you need to rob a bank to enjoy these perks of life too.
Well, if you dig deep, you’ll find out that many of your friends either decided to take out a lifetime mortgage, home reversion plan or reverse mortgage.
Equity release schemes allow you to enjoy financial freedom, among other benefits, and here are some but a few:
#01. You Can Liquidity Your Assets
Most people notice that by the age of 55, they have accumulated many assets in terms of property. However, unless you have a constant source of income, you might also be cash strapped. Opting for equity release allows you access to money without having to sell off your property. It is because, under the equity release plans, you still retain ownership of your property until you die or move into a care facility.
#02. You Don’t Have to Change Your Lifestyle
When people are short on funds, they tend to downsize their life. This cuts on spending and allows you to stretch the money you have for as long as possible. However, it also means that you need to give up on a couple of luxuries. Honestly working hard for over thirty years to have to move to a smaller house or give up on fine liquor isn’t fair. When you opt for equity release, you will have the financial power to maintain the lifestyle you were used to. You could even use the money as an investment for a business, which will allow you to live in luxury.
#03. You Can Use the Cash to Increase Your Property Value
In ideal conditions, the property should increase in value over time. As a homeowner, you can also make modifications to your property, which will increase its value. It could be simple things like changing redoing the flooring or even adding an extension to the house. An equity release plan will give you the capital boost you may need to do something like this. While you may not directly benefit from the improvements made, your next of kin will have more to inherit on your demise due to the increase in the value of your property.
Taking out an equity release loan might be the best thing you do for yourself and your family in your old age. It’s one of those things; however, that need to be well thought out.