Well, most of you are probably wondering what equity release is when it comes to financial matters. It is a common phrase in the financial world and heard especially by people who are either paying mortgages or just concluded paying them. Equity release mainly refers to a variety of products, which offer access to money that is tied up to your house. It only applies to people over the age of 55. Equity release allows many retirees to exchange their rich assets in case they are poor in cash. Various institutions offer equity release UK to help retirees acquire enough money to take them through the tough financial period they may be facing.
The money can be released either in lump sum amounts or small amounts or as a combination of both lump sum amounts and small amounts of money. However, before taking the equity release option to help solve your financial crisis.
It seems like the best option for retirees who require a quick fix of cash and do not want to mortgage their house. It allows them to give some of their assets out in exchange for finances that will take them through the tough financial period they may be facing. Here is a little information you should know about equity release.
To attain an equity release their two options available: the lifetime mortgage or the home reversion. For the lifetime mortgage, you are allowed to take out a mortgage on either your home or other property as long as it is your permanent residence. You are allowed make the payments of your lifetime mortgage or just let your interest increase. The amount you acquire from the equity release on lifetime is paid back to you in the event of your death or when you move into a care system
The home reversion option allows you to sell a part or your entire home to a home reversion officer, and in return, you acquire a regular payment or a lump sum amount from the sale. The home reversion provider allows you to continue living in the house, rent-free until your death. However, the maintenance and insurance cost become your responsibility. When using the home reversion option it is important to secure a certain portion for inheritance.
The percentage of the asset that you secure remains the same regardless of the value change on the property. You can only release the percentage you own only when you desire more cash. Equity release UK ensures they offer proper guidance to their clients that will help them make appropriate decisions when it comes to what type of equity release offer to acquire.
Equity release offers varies on different financial institutions. Each institution has its own rate and ensures that no matter the decision you make they stick with you all through the way. It is important to have the relevant information for the equity release offer your financial institution offers before actually acquiring the equity release. Learning about the offer enables you to become wise.