Are you worried about gaining the financial freedom post retirement? If yes then, chances are high that you like many other retirees and elderly individual is contemplating on various financial and pension plans. Have you yet offered Equity Release a thought? Well, to explain in simple terms, this particular plan lets the homeowner to extract cash against the house by offering the property to financial institutes acting as lenders. Well, before you plunge for the scheme; remember that your house must be enlisted under your name and must be in good condition. Furthermore, the value of your house must be 75,000 Pounds or more.
Well, lifetime mortgage and home reversion plans are two of the most popular releasing equity schemes that are available in UK. Both these plans offer you with an income against the value of your house, which can be extracted on a monthly basis or taken at once. Freedom to live in one’s own house until death or moving away is guaranteed in both the Equity Release plans. While, the home reversion plan refers to selling off all or part of your house to the reversion company, lifetime mortgages refer to a loan that is secured against the borrower’s home.
The plan of releasing equity from your house works in a similar pattern to all other pension plans that works for accumulating a good cash amount for obtaining financial freedom and flexibility during retirement. A wonderful venture for the property rich but cash poor elderly people, the financial plan helps the elderly citizens reap a good and profitable return against the value of the property. The double benefits of obtaining cash and entitlement of living in one’s own house works for the scheme. It is advisable to seek advice of an independent financial advisor before obtaining Equity Release. You can also take help from the online calculators rfor predicting the estimated equity amount against the property.