Settle for a peaceful retired life with release equity in home
- Author Dorthy Williams
- Published July 2, 2011
- Word count 508
Retirement comes with age and brings with it many worries and tensions. This is a global problem but the issue regarding pension is an alarming problem in the United Kingdom. Release equity in home is a popular way of solving financial problems with the old and retired people in the UK. In Great Britain, there are many plans that are related to releasing equity. Almost all the plans have lucrative features and the senior citizens can choose as per their wish and convenience.
With age various problems start looming large. The amount of pension that is sanctioned to the retired people is not enough for a comfortable stay. Therefore an alternative source of income has to be sought to lead a comfortable life. With ever increasing costs of living, medical expenses and so on, senior citizens in UK look forward to releasing equity. To release equity in home is an interesting concept. In this, the house of the person is mortgaged and the person is either given lump sum money at a time or the payment is done on a monthly basis.
There are both advantages and disadvantages of releasing equity in UK. Let us discuss the advantages that can be gained by releasing equity in home. The first and foremost advantage is that the retired person can get a large amount of money, which is tax-free. If the person does not wish to take the money at once, he/she can opt for a monthly scheme. However, both these ideas can be index-linked and remain valid till the death of the person. There is a No Negative Equity Guarantee, abbreviated as NNEG, which remains in favour of the borrower if there is a slump in the real estate arena. Not only these, there is an inheritance tax that has to be paid by the estates in UK. The amount of tax reduces considerably by releasing equity. Last, but not the least, if the rates of interest in the housing market fall, the borrowers have the legal right to refinance the mortgaged property at a lower rate with other customers.
There are also disadvantages to release equity in home. On the death of the original owner of the house, the family of the departed soul might get a lesser amount of money as inheritance to the property. This might happen if the rate of interest on the mortgaged property grows at a faster rate than the actual valuation of the property. Releasing equity might also hamper your desire to charity that you want to do. It might come in the way of the donations you want to make. You can be in a tight situation if you do not plan this properly with the help of expert people in this field.
Proper information, help and advice regarding releasing equity in the United Kingdom can be obtained from many online portals that provide financial guidance to people. Just make sure that the financial companies are genuine and have a good reputation in the market regarding release equity in home.
Dorthy is a content writer on releasing equity solutions. He has good knowledge on release equity in home. For more information he recommends to visit [http://www.therightequityrelease.co.uk/](http://www.therightequityrelease.co.uk/)
Article source: https://articlebiz.comRate article
Article comments
There are no posted comments.
Related articles
- Effective Strategies for Paying Off Your Mortgage Faster
- How Does Equity Release Work?
- Florida First Time Homebuyer: The Indispensable Guide of Tips, Programs, and Resources
- How to Become Debit Free?
- Sellers Concession the Closing Cost Option
- Financing Short Term rentals with DSCR loans
- Why move to Roseville CA
- Simple Interest Mortgage Advantage
- Are Low Doc Commercial Loans available in Australia
- How to Obtain a Rural Agriculture Loan Quickly and Easily
- What is a Caveat Loan?
- Tips for improving your Credit Score before getting a Home Loan
- 3 Things To Look out for With An Equity Release Mortgage
- Manage your Debts by Refinancing your Current Home Loan
- How to Get a Home Loan with Unusual Employment or Income?
- 20 Effective Debt Consolidation Loans Tips with Bad Credit
- Tips for Choosing a Non Conforming Lender
- Why is a Good Credit Rating Important in Australia?
- Most Common Ways That People Fall Into Personal Bankruptcy
- How to Choose a Consumer Credit Counseling Agency?
- Consolidate Your Debts and Take Control of Your Finances
- How to get a Home Loan due to a Bad Credit Report
- Debt Consolidation Home Loans are a Solution to Multiple Debt Problems
- Facts You Should Know About Low Doc Home Loans in Australia
- No Doc Loans from Private Lenders
- Home Loans to Consolidate Debt for People with Bad Credit
- How Can I Get a Mortgage If I Have a Bad Credit History?
- Guidelines to Fix Bad Credit Effectively Through Dispute
- Dealing with Debt – What to know about Debt Consolidation
- Investing In Yourself Before Investing in the Market