Showing posts with label Equity Release. Show all posts
Showing posts with label Equity Release. Show all posts

Monday, May 20, 2013

Equity Release Loans Can Lead To A Great Retirement

People are planning for their retirements earlier and earlier these days. This is because the cost of living keeps increasing and they are scared that they will not have enough money once retirement time rolls around. Unfortunately, the income through their pensions is no longer enough to live on. This is the reason why people are looking for a way to supplement their income that is needed for everyday expenses. This is where an equity release loan can help out these individuals in a big way.

Equity Release

What Is An Equity Release Loan

Equity release loans are growing in popularity. With these types of plans a homeowner can become eligible to take a loan against the property of their house. This will help to boost their retirement income personal loans with bad credit would help the borrow to get ahead and these will cost much more in the long run.

How Does This Loan Work

When a person takes an equity release loan the funds from the loan can be distributed as one lump sum payment or over a series of payments throughout several months. The amount of the loan will depend on the property’s value once appraised, the condition of the property and the size of the property. The smaller the size the lesser the amount given however if the size is larger the amount being loaned will be higher. The loan is then repaid back to the lender once the homeowner passes away or the property is sold.

Qualifications

There are a few qualifications that the property and the homeowner must meet in order to be qualified. The first is that the property should be free of a lien holder. This means that the property is owner outright. The applicant that is the owner of the property also needs to meet an age stipulation and he or she must state their age when completing the loan agreement. The most common age restriction is the age of fifty-five. The older the applicant is the better chance for the borrower to be approved.

Why Should I Consider This Option

In today’s market the value of houses is rising once again. Property owners who are planning on using an equity release loan are excited to hear this news. Of course this is also another reason why many of the older people in the community are becoming victims of scams.

As a homeowner if you are looking for a way to help out the amount of income you have every month this is a great way of helping to pay for your retirement. If the house you are trying to loan against is in good condition and the value is appraised high the homeowner will probably get a good return and be able to live comfortably.

Conclusion

When researching your options of an equity release loan you should do plenty of research and ask many questions. There are many people who are just out to scam the elderly and most of the elderly cannot afford this kind of a blow to their finances. A mortgage broker should be able to answer all of the questions that you may have prior to signing the loan agreement.

Friday, May 3, 2013

Equity Release Can Help You Release Tax-Free Cash

Equity release can help you release tax-free cash from your property for you to spend as you wish, with typically no monthly repayments to make, and also equity release is available to homeowners who are aged 55 or over.
Equity Release

Here are some ways of how equity release can assist you:

Home improvements

One of the main reasons to release equity among Age Partnership's clients is to create improvements to the home, such as building an extension, and conservatory, or having a new kitchen fitted. What this does is makes equity release predominantly appealing, as the money that you are spending is directly affecting the value of your property.

Clearing your mortgage

I’ve come to notice that for the majority of people, mortgage repayments stand for their most important monthly outgoing. Even if, like most people, your house is now worth much more than it was when you bought it, there's a chance that you are still making repayments every month. Visualize the type of result it would have on your disposable income if these payments were no more. Many people are now choosing to release equity from the property to make this so, clearing their mortgage and benefiting from additional disposable income each month.

Financial peace of mind

Releasing equity in your property can help you to achieve financial security and peace of mind during your retirement years. These years are supposed to be a time of enjoyment; a time to do all those things for which you were unable to find the time whilst you were working to pay the bills or raising the family. But for all too many people, the pensions into which they've paid throughout their adult lives are not sufficient to allow for many luxuries. That's where equity release could help.

Mitigating inheritance tax

Over recent year’s house prices have elevated quite rapidly, increasingly people are now finding that their estates will fall within the grasp of the Government's treasury department when they sooner or later pass away. In actual fact, any person who passes away leaving an estate worth in excess of £285,000 will be subject to inheritance tax.

Helping family members

You should know that as much as you might think retirement years are stress free and relaxing they’re not at all, with inadequate pensions and the effortlessness with which we can get hold of credit, too much people waste their retirement distressing about how to pay off bills or loans from a limited income. For a lot of these individuals, equity release may well be the answer. There’s no reason why you have to have to scrape around, paying off one debt with another, when the regular proprietor is now in ownership of a home worth in excess of £150,349?

There are many companies that let you compare different types of equity release so that you can gain fuller understanding of each product before you commit. Thank you for using your time to read the article it means a lot.