Is Equity Release right for you?

by Jody North on December 7, 2011

Equity release is a means of unlocking value of a house, without needing to move house. It’s used generally by older property owners who either have paid off their mortgage entirely, or have a small amount remaining to pay for. All equity release schemes are intended to be long-term plans and so are therefore not to be entered into casually. After you have opted in for them it can be hard, costly or perhaps impossible to get out of if your situation change.

Some of the choices will demand that you give up possession of your property possibly totally or in part; others that a mortgage is put on your home. After many years of saving to pay off the mortgage loan this may be a difficult move to make. Should you choose to take this path, it’ll be important for the reassurance to understand fully what this will mean with regards to your rights and safety of period – to put it differently, your right to remain in your property for your life span.

These will likely be set out in your small print of the company’s offer to you. If you aren’t happy to accept them, equity release might not be for you. If you decide to go ahead and take advantage of the worth of your property to supply extra revenue or capital, then it is vital to remember this will undoubtedly have an impact upon any monetary gift you might want to leave to your loved ones.

The majority of the schemes for equity release work either by selling a part of your home, or by taking out a mortgage in which the interest rates are rolled up until passing away. Remember that both of these methods can result in a loss of assets to pass on following your death. It’s because of this that you might think about speaking about the options with the family – it may be that they’ll help in a way.

Equity release is just not suitable for everybody and you should always consult an unbiased legal financial advisor prior to taking out a plan. Getting the right advice from experts in this field is essential. They will explain the legal factors included and help you understand the conditions and terms of any agreement.

Because these are long-term plans, you have to be especially cautious to take into consideration what can happen in the foreseeable future. Your position may change as you get older and it’s vital that you have thought about how any approach taken now might affect your future options.

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

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