The Benefits of Equity Release

For many elderly homeowners rising property values over the last several decades has caused a dilemma.

On one hand it is likely your home has increased in value significantly. But on the other, the capital increase is tied up and doesn't filter through in hard cash.

Before Equity Release Schemes the only real way to get the built up capital out of your home was to sell and move down the property ladder. But this causes problems because many people viewed their property as more of a home, perhaps becoming attached to both it and the surrounding area over the years.

So the real attraction of Equity Release is that nothing changes. You still live in your home but the money released can help to provide a retirement income.

However, Equity Release schemes are not right for everyone. The disadvantage is that they’re often inflexible and somewhat expensive. It is therefore advised that prospective applicants look at and explore other ways of raising cash.

There are currently 2 different types of specialist Equity Release Plans -

• Lifetime Mortgages where you take out a loan secured on your home. These are the most popular - more details on Lifetime mortgages
  
  
• Reversionary Schemes where you sell a percentage of your home in return for an amount to be paid either as a lump sum or it’s invested to provide an income. More details on Home Reversion