As you approach your retirement age, there are various factors that may concern you. The first thing that most retired people think about is their finances. Thought needs to be given to the drop in income & resultant lifestyle that retirement will undoubtedly bring.
However, with a quality equity release comparison site, they can access & research the various equity release schemes currently available. These schemes ensure that property owners can withdraw a regular source of tax-free income, or a tax-free cash lump sum. With the help of equity release, pensioners can hopefully enjoy a prosperous and happy retirement.
With an accurate equity release comparison , they can come across various equity release mortgages to which there are no monthly repayments.
However before taking the plunge, homeowners must consider the alternatives first. These would be to either choose to either move into a new house or stay as long as they want in their existing home. Today there are many different equity release schemes available. This is why it is important to get the right equity release advice. Various comparison sites were developed to provide pensioners with information, impartial advice and various other experts advice on how to apply for an equity release scheme.
With an equity release scheme home owners can obtain money that they can utilise on making home improvements and other financial outgoings. The total amount of cash that is released from the property is based on a number of factors such as: the value of the property, age of the youngest applicant, any existing mortgage outstanding and the type of equity release plan they choose.
They can get a fast and easy answer with the help of equity release calculator.
To qualify any applicant must be a homeowner & it be their main residence. Property type is also an important factor. Equity release schemes are available for leasehold maisonettes and flats as well. However, always check with an independent equity release adviser who is experienced in property types as this could save you considerable time & expense.
An agreement is made in between the provider and the homeowner that results in a tax-free sum being released as per the value of the home. If the home owner decides to enter into long-term care or to sell the house, the equity release plan is effectively coming to its conclusion and will come to an end. The homeowner’s beneficiaries or exector of the estate will then need to repay the loan and the accumulated interest by selling the property. Most lenders will provide a 12 month window of opportunity during which time the house must be seen to be actively sold. If he is not able to do so from other sources of capital/mortgage finance, then there may be a need to have to sell the property. Equity release comparison tables in conjunction with independent advice is essential to help understand the pros & cons of equity release schemes.