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Releasing Property Equity - An Author's Guide»
What are Equity Release Schemes and Home Reversion Plans?
Put straightforwardly, equity release essentially means a financial agreement between a homeowner over 55 and a lender that provides the home owner access to the money and value that is tied up in their home.
This value comes in the form of tax-free cash and affords the home owner the chance to enjoy the retirment that they have dreamed of and worked very hard for.
For most people, their home is their biggest asset. Equity release is a method of transferring the value of this asset in order that the home owner can take full advantage of their lifetime of mortgage-payments.
Equity release, therefore, turns your home from an illiquid asset that you can not access into what is essentially a pension fund. This means that extra money and financial help is available to you at a time where income is usually relatively low.
It is important to choose a SHIP equity release provider. Click here to find out more about SHIP.
This site recommends you visit Responsible Equity Release by clicking HERE and use their eligibility calculator to see if you could qualify for a SHIP registered equity release plan.
Why are people releasing property equity?
A retirement is seen as the positive light at the end of the working tunnel. However, some retirees will even suggest that they miss working. When asked to expand on this, it turns out that what they really miss is being active and busy. However, with a set budget coming from the pension, many simply can't afford to keep themselves busy doing things that they value.
With a lifetime mortgage, they can be free from financial constraints so that your hobbies, travels and activities are an affordable reality.
Not only is equity release an easy way to fund an enjoyable retirement, it can be used as a way of looking after loved ones.
While some people believe that looking after loved ones requires leaving them an inheritance, many people are thinking beyond this to look after their loved ones when they need it most. Somebody got in touch with us and told us that their sons had emigrated to the USA, leaving them without the possibility of regular visits. The lady took out equity release and now she can afford to see her son and grandchildren on a regular basis.
Another reader decided that his grandchildren would be better served by his estate if he were to release the equity to help fund their education. The logic behind this was simple. If he were to leave a will, they would have benefited when they were already capable of earning for themselves. Instead, he decided that equity release would provide them with the best possible education to give them the best start that they otherwise would not have had.
There are plenty of reasons to choose to release equity and not one of them can ever be considered selfish or self-indulgent. The point is, many have worked for their retirement and deserve to enjoy it as much as anyone else. Whether that enjoyment comes from providing for your family, visiting your loved ones, or living your retirement dream with a little panache, equity release is a good way to go about things.
Follow the yellow link for more insight on equity release and up to date equity release news
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