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Are you facing a pension shortfall? Do you need to meet an unexpected expense? Do you want to fund a retirement treat for your family and friends? Which of these is your specific question for a specific need? Worry no more because every problem has an answer. One of the answers to these questions is equity release. It is undeniably attractive to elder people because it allows you to tap into the wealth all that you have accumulated in your property without the hassle of having to move. Equity release is a means of retaining use of your house or other object which has a capital value, while also obtaining a lump sum or a steady stream of income, using the value of the house. The "catch" is that the income-provider must be repaid at a later stage, usually when you die. Thus, this is particularly useful for elderly persons who do not intend or are not able to leave a large estate for their heirs when they die. It can provide tax-free cash through lump-sum or a steady income (annuity), which can be index-linked, for the rest of your life. It can also reduce the amount of inheritance taxes paid by your estate. However, equity release can be a little expensive because a lifetime mortgage can cost almost four times what you borrow after 20 years, while some home reversion schemes demand more than 70% of your home’s value for just a 20% advance. There are two main types of equity releases, namely the lifetime mortgages, which allow you to borrow money against your house; and home reversion, whereby you sell a share in your house. You borrow a proportion of your home's value in a lifetime mortgage. Interest is charged on the amount but nothing usually has to be paid back until you die or sell your home. The interest is compounded over the period of the loan, which could mean your debt would almost double in 11 years at current rates. Lifetime mortgages are available from the age of 55. In a home reversion scheme, you usually sell a share of your property for less than its market value. You have the right to stay in your home for the rest of your life if you wish. But when you die or move into long-term care and the property is sold, the provider gets the same share of whatever your home sells for as repayment. For example, if you sold 40% of your property to the provider, it would get 40% of the sale price. Home revisions are available only to people from the age of 65. Equity release has many plans like Aviva, Liverpool Victoria, Just Retirement, Bridgewater, More2Life, New Life, and Partnership equity release plan. Aviva equity release plan offer lifetime mortgages and draw down the lifetime mortgages from as little as 5.55%. Liverpool Victoria also offers lifetime mortgages but draw down mortgages from 6.19%. Just retirement offers lifetime mortgages and home revision plans. Bridgewater offers home revision through flexible release plan. More2Life in the other hand, offer enhanced plans from 6.99%. New Life offers flexible lump sum mortgages from 6.14%. An enhanced lifetime mortgage at 7.65% is offered by Partnership equity release plan. There are still many types of these plans, so, choose the best plan from your equity release and enjoy the benefits of having money even you are elderly. Visit the Equity Release Comparison when you are interested to avail of any equity release plan.
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