Equity Release Advice: Some basic information

by Jody North on December 6, 2011

Equity release is known as a means of unlocking the value of a home, and not having to move home. It is used mostly by elderly property owners whom either have paid back their mortgage completely, or have a small amount remaining to pay. All equity release schemes are meant to be long-term arrangements and so are therefore not to be entered into casually. Once you have opted in for them it can be hard, expensive or perhaps impossible to get out of if your situation change.

A few of the options will demand that you hand over possession of your home either totally or in part; others that a mortgage is put on your home. After a period of saving to repay the mortgage loan this is usually a difficult thing to do. Should you decide to take this way, it will be very important for the reassurance to know completely what this will mean when it comes to your rights and protection of period – to put it differently, your right to remain in your property for your life span.

These will be put down in your fine print of the loan company’s offer to you. If you are not happy to agree to them, equity release might not be for you. If you want to go ahead and make use of the value of your property to provide additional income or capital, then it’s important to remember this will undoubtedly have an effect upon any inheritance you might wish to leave to your family.

Most of the schemes for equity release work either by selling part of your property, or by taking out a mortgage in which the interest is rolled up until death. Understand that either of these methods will result in a loss of assets to pass on following your death. It is because of this that you might consider discussing the options with your family – it might be that they can aid in some way.

Equity release is not suited to everyone and you should always seek advice from an impartial legal financial consultant prior to taking out a plan. Getting the right advice from experts in this area is essential. They will clarify the legal elements involved and assist you to understand the conditions and terms of any agreement.

As these are long-term plans, you need to be particularly careful to take into consideration what can happen in the future. Your position may alter as you get older and it’s crucial that you have thought about how any course of action taken now may have an effect on your future options.

Want to find out more about equity release advice, then visit this website on how to choose the best equity release schemes for your needs.

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