Almost every single person has a dream of having their own house someday. But have you given a thought as to what buying a house would mean? It would certainly mean that you would have a place to call your home but it would also mean that almost all your funds will be invested in buying the property. This is a very uncertain situation now if you are a retiree and do not have a fixed monthly income. As sometimes your pension or your savings may not be enough to meet some unexpected circumstances that may crop up like hospitalization of a relative or wedding of your daughter. Do not worry; you have a solution at hand by the name of equity release.

You must be wondering exactly what this equity release is. Well, let me give you a very brief explanation. It is simply a loan you get against the value of your home while still having the right to stay there. There are only 3 requisite criteria that you must fulfill to take the advantage of this equity release scheme, which is also known as equity mortgage release, they are:

You need to be of minimum 60 years of age.

You need to have a house to your own name.

You have to have the house should be in good condition.

You are eligible to apply for an equity mortgage release if you satisfy the above mentioned conditions.

There are a number of advantages of equity release, the very first being that you can still stay at your house and call it your home. The other advantages are, you will get an inheritance tax benefit if you opt for equity mortgage release as you would not be able to leave a huge inheritance to your beneficiaries. Though the loan is given on the value of your property; you cannot really call it a mortgage since you will get the loan amount in cash generally given on a monthly basis. Some lenders may want to pay you a hefty one time amount but it is advisable to avoid such lenders because accepting a one time sum may cause the value of your house to depreciate quickly.

The main disadvantage of equity mortgage release is that you would not be able to leave a hefty inheritance for your beneficiaries. This is because the value of the house put up for equity release depreciates to a point where there is nothing left for your heirs.

The equity release scheme is an option you should take up after your retirement, especially if you do not have an heir to leave anything. You will be able to enjoy your retirement without any worries for medical bills or other expenses that they might not be able to cover with their savings or pensions or other investments. The equity mortgage release scheme is also a better idea than other kind of house mortgage options due to the fact that you get a monthly amount without having to leave the place you call your home.