Equity Loans

What You Need to Know About Equity Release

Did you know that you can get some cash from the equity tied up to your property? Equity release plan is available for persons who are 55 years of age and above. Equity is the current value of your property minus the unpaid balance of the loan you secured on it. Since it is already yours the equity of your property is tax-free. You can spend this money on anything you want. It is all up to you. When we talk of equity release, it is releasing equity or unlocking some of the money tied up to your property. If you want to avail of equity release loan there are three schemes available for you. These are the equity release lifetime mortgage; drawdown plan; and home reversion plan. You can choose the option that you think can provide the most for your circumstances. When you avail of equity release plan you need not worry of getting a new place to stay. You can stay in your home for as long as you want to. You have the right to remain in your house for the rest of your life. Furthermore, monthly repayments are not required. Payment for the plan will start upon the death of the planholder or whenever you will decide to permanently leave your home. You will receive your money as a cash lump sum, a regular income, or as a combination of both options. The amount of equity you will receive will depend on how old you are, how much the current value of your property is, and what type of plan you will choose.

The first scheme is the lifetime mortgage. It is a type of equity release mortgage that will release your property’s equity as tax-free lump sum or you can take the money as a regular income. In this plan you retain the full ownership of your home.  The second scheme is the drawdown plan. This plan is the same as the lifetime mortgage but you will not receive the money in lump sum. You have a pre-approved cash reserve and draw down the cash in stages. The last scheme is the home reversion plan. You will sell your property or a part of it to a third party.  You will then receive your money in lump sum, an income, or a mixture of both. The property covered by the plan will belong to the reversion company.
For more information and advice on getting an equity release plan, you can visit us at   www.expertequityrelease.co.uk. Our agents are ready to help you throughout your application process.