Equity Release UK - How It Can Change Your Life
- Author Jim Wright
- Published June 15, 2011
- Word count 498
Equity release on property is getting very popular in the UK. This financial scheme offers cash based on the valuation of your property. It is quite possible to claim fifteen to fifty percent of the property value through it. The eligible age limit for home equity release is fifty five. The money obtained from equity release UK can be utilized for various purposes. For instance, it can be used for lifestyle improvement or for helping your children and grandchildren.
However, not very long time ago equity release was considered of little worth because of high interest rates. Falling values of house property also contributed to its ill repute. But today the scene has changed dramatically. The latest scheme is a whole new version from the 1980s scheme. At present there are two types of home equity in the United Kingdom. The first one is lifetime mortgages, and the second one is known as home reversion.
The lifetime mortgage will offer you a tax free lump sum amount against your property. Repayments for this version are unnecessary and can be delayed till the sale of the property, usually at the time of an individual’s death or at the time when he moves to a residential care. However, this is the time when the principal amount along with the interest accrued is been repaid. The option of draw down is an interesting aspect of the lifetime mortgage plan. It allows you to draw small amounts whenever required.
On the other hand, the home reversion scheme involves part sales or entire sale of your property in return of an assured tenancy for life time. Though the home reversion scheme is not that preferred over lifetime mortgages, it is capable of releasing a decent sum of money without even involving loan. This scheme is more suitable to senior citizens who are not bothered about leaving their property, and generally believe that the prices of their property would not increase a lot in the near future.
Equity release on property experiences a great degree of variation in the UK. Some of them are offered directly through the help of the independent advisers. Therefore, it is mandatory to consult an advisor before making your decision. An experienced advisor would be in a position to find the most competitive scheme to suit your needs. Specialist advisors operating independently are capable of negotiating favorable terms for you by focusing entirely on the home reversion scheme and the lifetime mortgage. Usually, there is no need for paying an extra fee for their special service and therefore you can save your hard earned money. An Equity release UK advisor often helps you to calculate the future risks involved with a particular scheme. He also helps you to obtain the special discount on the interest rate.
A home equity release actually involves complex calculations even though it may appear quiet simple at the initial stage. So, take it seriously, and shape your future in the best possible manner!
Jim Wright is a content writer on Equity release on property. He keeps good knowledge on the Equity release UK. For more information he always recommends you to [http://www.therightequityrelease.co.uk/](http://www.therightequityrelease.co.uk/)
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