We may not believe that money is the most important thing in life but we also cannot fully negate the fact that it is one of the most important things for all of us. People say money cannot buy everything but if we try to give a closer look into the fact then is there anything available in today’s life which money cannot buy? Am not talking about the emotional aspects here obviously, but the fact is that if you do not have money, you are not in the eligible stratum of the society. This is something which is a matter of deep thought among those who are going to retire soon. For them, retirement means the stoppage of a regular income and therefore the cut short of their day to day expenses. However, with the invention of equity release, retirement is not a matter of worry anymore.
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An equity release can be termed as a power booster for you if you have already thought that you will be lacking a lot after your retirement. Anybody of or above the age of 55 years will qualify for an equity release. However, it will further depend upon your gender as well as the value of your property. Being a resident of the UK, you will be able to choose from various equity release schemes. There are a number of online equity release sites which help various applicants to lead a worry free life after their retirement with some of their best options.
Lifetime Mortgage is one of the most commonly used schemes by the various applicants. This is nothing but similar to a standard mortgage where the property of the applicant is kept in advance and thereby securing a loan amount of its value. The value is repaid after the death of the applicant by selling the plot/property. If the applicant has the partner, then the amount will be repaid after his/her death or when he/she will be gone somewhere else forever. The best part of the lifetime mortgage is that you do not need to repay any amount till the time you are living. This is the mortgage for life and the money you get will be absolutely tax free and thus you can use the money any way you want.
Drawdown Lifetime plan is another scheme which has evolved greatly in the last 7 years or so. Here, the loan amount is given on the basis of the age of the applicant as well as the value of his/her property. The best thing about this scheme is that you can borrow the amount which you need immediately and then throughout your life you can keep borrowing small amounts but the amount which you need to repay will be calculated from the day it is loaned to you.
Home Reversion Plan is a bit different from the other two plans. It requires the applicants to sell their properties and a lump sum amount is given to them in return. This way the applicants get to live in their own home absolutely rent-free for the rest of their lives.
These above mentioned equity release schemes are very popular among a lot of UK retired adults. However, before you think about applying for your own equity release option, you should be well aware of the terms and conditions of the same. It is very much advisable to go through the site and you can also have a chat with the equity release experts. This way the whole process will become a lot easier for you.