In United Kingdom equity release is the term used to refer the process of reverse mortgage. This is useful for senior citizens as equity release allow them to stay in their home till death. In case someone goes into a nursing home permanently. Through equity release, the homeowner can cash the accumulated equity of the property and use the fund for any other purpose. There are many ways of cashing the value of a property while continuing living in the premise; equity release is one of them.

Only licensed lenders can offer equity release service to the citizens. The lender gives the homeowner the equity share of the home instantly. The homeowner continues staying in the house and when the owner dies the lender gets the right to sell the property and get back the fund.

Retired persons or elderly people can be benefited by the equity release or remortgage process. They get a lump sum amount in hand; this fund can be invested into annuity insurance or any other retirement plan. This way they can get a steady income as well. And most importantly, they can still live in the same house – no need to sell off and move to a new house in a new locality.

Those who want to keep something for their heirs can put the money in annuity insurance. This way they can use the benefits of equity release and, at the same time, can keep something for their heirs by making them joint-owner or the beneficiary of the insurance policy. Before you go for equity release make sure you know the worth of the property accurately. You can try equity release calculator to check the valuation of your home.

Here is a list of benefits of Equity Release?

It opens up another source of income for you, and that is when you are not in a position to work. Moreover, the amount you get by releasing the equity of your home is tax free. How much money you can get from equity release depends on the value of the property, the amount of mortgage if any, and the present market scenario. You can appoint an evaluator or look for equity release calculator to know how much you can get by releasing the equity of your home.

The money can be used on various types of ventures – you can start a business, you can invest it, you can simply keep it on savings or do anything else. A lot of people use this program to pay off debts, avoid bankruptcy or repossession as well.

No repayment – No monthly installments

If you need urgent cash and you take a loan, chances are you have to pay a huge installment every month to repay the loan. With equity release you can get a lump sum amount in hand without having to pay any monthly installment. It relieves you from a lot of worries and tension.

You can keep the property

And you can still live in the house – the lender gets the right to sell the house and get back their fund once the owner dies, not before that. So you can simply continue with your present lifestyle.