Sales of equity release plans have ascended in the recent years. On the off chance that you are planning on applying for an equity release plan against any property, keep in mind that you have to fulfill certain requirements.
What is Equity Release?
Equity release plans were first introduced in the year 1965. It is a method for holding your property while also getting a lump sum amount or constant flow of income from the estimation of the property.
Who Can Enjoy An Equity Release Scheme?
If you are a United Kingdom house owner aged 55 or older, you may be qualified to get the money tied up in your house.
What Are The Different Schemes Available?
There are 2 types of equity release;
- Lifetime Mortgages: In a lifetime mortgage contract you can borrow a proportion of your property’s value and interest is charged on this sum. You normally don’t pay anything back until you sell your home or die.
- Home Reversion: With a home reversion contract you would typically sell a part of your property to the provider less than market value. You have all the right to live in the property for the rest of your life. At the time when your turn into care or pass away the property is sold and the provider receives the same share of the property as they paid.
Why Release Equity from Your Property?
Some of the most popular reasons to release equity from a property are (1) to fund home or garden improvements, (2) to fund a holiday, and (3) to pay off credit card debts or loans.
What Do You Need to Consider?
Releasing equity from a property is a long lasting commitment and it is significant that you fully understand the consequences and obligations before committing to a plan, you can also take a help from firms like Sun Life Equity Release.