Did you ever wonder about what would happen to your property after your death, given to the situation that your spouse is no more and you are not blessed with a child. Well, considering the downsizing option and living in another house at this old age is certainly not a choice and you cannot even think of selling off your property to some third party; after all, your sweet home holds too many attachments to just let it go.
Well, despair not; as the financial scheme of equity release comes to your right help. Wondering about the idea? The scheme offers a simple proposition; under this scheme, you are entitled to receive a monthly payout or a cash lump sum against the value of your property. However, prior to relying upon the financial scheme, you must remember that you must be above 55 years of age and must have a property of your own.
Understanding the Scheme of Releasing Equity from your House
With the real-estate market ensuring a steady growth, relying upon equity release scheme is turning out to be a prospective option for elderly option. The reasons are simple; you can live in your house, until your death alongside receiving a monthly payout in return of the property value. What more? You do not have to worry about paying back the loan to the equity release providers, as the provider will accrue the money by selling off your property, after your death.
Why Equity Release Schemes have become Popular?
With retirees left with little pension amount and stocks and bonds not gaining much profit in the industry, equity release scheme have come up as the only trusted source of generating income. The fact that you get to live in your own house and live the rest of the days in your life at complete peace without any financial worries seem to do the trick for the retired homeowners.
Equity Release Schemes – The Availability
While, generating income with an equity release scheme, you are likely to have the choice of investing with a lifetime mortgage or a home reversion plan. Here is a look –
* Lifetime Mortgage - under this plan, the homeowner receives a cash lump sum by keeping his or her house in mortgage. Usually, the loan if offered at an interest that keeps adding throughout the living term at a fixed rate.
* Home Reversion – Under this plan, the homeowner can sell a part or the entire house to a reversion company in return of a lump sum cash benefit.
However, while investing with an equity release scheme, it is advisable that you seek an expert advice since; the scheme involves heavy financial transaction and requires a deep understanding of the terms and condition.
Author Bio – Jonathan James holds a profound interest about writing for equity release and the various plans available under the scheme. In this article, he writes about the way investing with an equity release scheme can help you sustain a living throughout the post retirement period.
I'm Louida from Atlanta, Georgia and I'm a mother of two daughters, blogger, and full time working mom at a Business Consulting Firm.
I love helping others learn how to start working from home on the internet free to supplement their current income.
I also blog at Productreviewmom.com
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