Release Equity on Your Home, But Carefully

in Equity

The prices of the houses have more than doubled since the past few decades. So, the house owners are turning towards their houses to finance their retirement years. If you look around a bit, you will find a number of schemes and they deliver all that they promise. But you have to do your research and find out just the scheme which is going to suit your specific circumstances. These schemes are best for those who are aged 60-70 years as they stand to gain the most from these schemes.

In order to be eligible for the scheme, you have to be within the 55-70 years' age bracket, be the owner of a property that is valued at or above £30,000 and is preferably a freeholder. If you meet these criteria you are good to go. You will get a loan against your property which can either be in the form of monthly payments or as lump- sum cash. But before you agree to the terms you have to ask the following questions. Based on the answers to them, you have to take your decision.

  • As you grow older you might want to move nearer your family or into a care home. Will the scheme allow you to change houses?
  • Is there an inheritance issue? If your family is banking on an inheritance after your death then this might not be the plan you would like to go for as the house will be taken over by the equity release provider.
  • Do you live with a partner who is expected to outlive you? Then you have to make sure that the plan allows for them to live in the house after your demise.
  • Is it better to find out if you qualify for the means-tested state benefits? Equity release, in spite of the benefits and facilities it provides, is always advised to be kept as the last resort. It is always good to find out of your qualify for any other grants from the government. Moving to a less costly place is an option too.

The amount that you can expect from releasing equity depends on a number of factors. So it is best to take the help of an equity release calculator to be sure. In any case, make sure that your family is duly involved in every level of the process since an inheritance fuelled feud is the last thing anyone would wish for in their family.

Author Box
Alysa Hill has 1 articles online

Alysa Hill has a long experience in dealing with financial issues. She has also written a number of blogs and articles on equity release, equity release schemes and equity release calculator. Here, she talks about the questions that should be asked before signing on the dotted line.

Add New Comment

Release Equity on Your Home, But Carefully

Log in or Create Account to post a comment.
Security Code: Captcha Image Change Image
Related searches:

Release Equity on Your Home, But Carefully

This article was published on 2012/06/21