Advice for Retiree

Archive for the month “February, 2013”

Equity Release Is a Pivotal Financial Contributor in Your Post Retirement Life

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    image courtesy: http://goo.gl/g46Qu

The properties’ value in UK is on a rapid rise. A large number of Brits have significant value tied up in their properties. On the other hand, insufficient pension pot is inadequate to meet the basic standards of post retirement life. For them, who bank upon pension pot to live a comfortable life, it’s proving a nightmare.

It’s no surprise to see such a huge response to equity release scheme, the dastardly economic effects are compelling homeowners to draw out money from their properties. Into the last year, 2012, equity release market plunged forward, accomplishing new heights in the industry.

The governing body in equity release market, SHIP, is on the cloud nine by seeing a huge response from older homeowners. The growing needs amongst retirees and awareness about various plans under equity release are the causes behind such a huge uproar for this scheme.

Poor savings and insufficient investment returns have drenched retirees’ standard of living, economic slowdown is adding to their woes. With high inflation rates on all the essential commodities, living a substantial post retirement life is becoming impossible for many retired persons in UK.

Equity release can provide them all what they have ever dreamt of. With lowered interest rate and various flexible plans, equity release market has come of age and being driven by faith from customers.

However, like every coin has two sides, equity release, too, is having some positives and negatives. But, its virtues have the abilities to overlap negatives, which are only a few. In spite of some negative consequences, equity release scheme is far better than several interest only loans. One must not be in dubious mind, release equity on house and fund your retirement to start financially secured life afresh.

Let’s talk of some pros and cons, start with virtues of equity release scheme:

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pros cons

Pros

  • Tax free lump sum or monthly income
  • Usually, there is no requirement of monthly repayments
  • Spend the money as per your wishes
  • Full ownership of house for lifetime
  • No negative equity is guaranteed
  • Debts are not passed on to your family
  • Possibility to leave inheritance for dependants

Cons

  • Estate value might get reduced
  • Entitlement to state funded benefits might be affected
  • If you opt for a wrong plan, interest rates might be higher

Do not get driven by some of the negative aspects of equity release. Well, suppose, your estate value gets reduced but that is not sufficient to curtail you from living a comfortable life. If you have no heir or you do not intend to leave an inheritance, what your house is worth for after your death?

With the released money, you can fund your basic needs, as the money received is so high. It’s important to seek experts’ advice  as they can provide you exact information on various equity release schemes and which one is best suited to you.

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Access Money That’s Trapped For Long

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Goodness!! So, you seem to have won huge amount of tax free cash. It sounds great when you hear the word tax-free cash, especially when your income is restricted and you are too old to find a job for a living. Well!! But to get this cash you have to release your property‘s worth. Believe it or not today, thousands or may be millions of home owners are releasing cash on their property to sustain a living.

Finding money that works for youmoney-house
image courtesy: http://goo.gl/x767Cneeds.

Financial freedom is one of the main reasons why seniors are opting for these easy mortgage schemes; but even if you are inspired hearing all of this, there is need for you to look at some key facts as those mentioned below. Remember this is a lifetime commitment and you need to decide with your cool brain working:
• Equity release schemes are designed in ways such that you will receive an initial sum that is hardly close to your estate value.
Yes, and if it is about leaving inheritance then, consider seeking better plans that aptly suit your

• It is assumed that equity release may affect your entitlement to receive Governmental benefits. It is better you seek help of an advisor.
• A viable option is to sell your property and use up the money. You can even think otherwise.
• The lifetime commitment will entail you to pay the loaned amount in full after your demise or after the demise of your spouse. If you want to repay the loaned amount earlier then, you will have to pay charges for the same.
• On the other hand if you are looking for other borrowing options you will have to consider the monthly repayment schemes which are absent when you opt for an equity release plan.
• A customised illustration will help you understand the risks involved.
• Make sure you carefully analyse the equity release schemes available to you. This will help you understand your responsibilities.

Your  Needs
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Apart from considering the few facts mentioned above, you should also be aware of the truth that equity release plans give you 100% freedom. However, it is always a wise idea to research on schemes available in the market. This will help you seek the best plan that deems to suit your needs. Get an equity release guide to know how the scheme works and whether it is appropriate for you.

Bid Good Bye To Your Post Retirement Worries With Equity Release

Life post retirement is all full of happiness and joy! Well that’s what people in general feel when they are about to step into the phase of post-retirement. But little do people know that life during the phase of retirement is not all that smooth and comfortable with the sudden halt in the steady flow of income. The pension remains but let’s face the reality where we know that the mere pension will do no good in making both ends meet. So if this sounds like a serious problem giving you sleepless nights, it is time you forget all your worries and do what you can do best of looking for a suitable alternative.

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If you have crossed the age of 55 and you have a house of your own then a solution to your problem is not far behind! Yes if you have met with the above two criteria then you are sure to apply for equity release. At last you found the solution to your problem! But sure many people are not aware of what equity release is all about. Without any further delay it is time we get to know that equity release is all about the facility of drawing money from a company based on the property that you own. The good news is that in spite of drawing money from a company you still enjoy the ownership of your home till the time you live. Following which the company shall have full ownership of your property.

So are you all excited to go for it? But the first thing that you need to do is get hold of equity release providers. Getting them is not all but you need to take care of a few things once you face the equity release providers. The few things that you ought to keep in mind are:

  • A thorough background check on the equity release providers is important to know what you are getting into. Preferably a reference for the equity release providers will do you good.
  • It is important that you carefully know about all the available schemes that are there for equity release. The reason for stressing on a careful read up on the different schemes will help you know which schemes suit your needs the best.
  • Equity release helps you know that in spite of not having a job post retirement the money you get from equity release act as the most suited alternative for your income.

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Now that you know the importance of having equity release, remember to get hold of the best equity release providers.

Get Equity Release for Pleasant Twilight Years by Ethan Carter

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