The Advantages of Equity Release

In tough economies home owners are always looking for ways to make their investment work for them. If you're looking for a comfortable way to retire, then you might want to consider an equity release. This particular form of investment takes one of two popular forms. Either you take out a lifetime mortgage on your home, which will give you a lump sum or regular monthly income for the rest of your life, or you sell parts of the ownership of your home with the condition that you will remain living in it until your death or until you choose to move out. Either way you are using your investment to provide for a safe and secure income for your retirement years.

How much money can you earn with an equity release on your home? Well, use an equity release calculator. This application will review your home, and all of the equity that you have saved up in it, and it will give you the amounts you can expect either as a monthly payment or as a lump sum. When discussing a release it's always a good idea to ask for the exact calculations your bank does, just to ensure that their calculations and yours come out to the same number.

But why would you get an equity release in the first place? Well, because while some people may refer to this as a scheme there are a lot of advantages to it. The initial benefit is of course the fact that you've established a source of income by slowly bleeding out the investment in your home to cover other expenses without actually sacrificing your home. So you get to have your cake and eat it too, financially speaking, because you get to collect the income while still living in your home until you die if you so desire. If you choose to sell your home that is when you will have to settle with the bank and make sure that they receive an equal amount that was paid out to you in equity over the term of your release.

On the other hand, if you want to leave your home and property to family members then this program isn't right for you. Essentially what you're doing is slowly selling your home, all the while living in it. So when the day finally comes that you die, you cannot simply leave your home to your children or to good friends in your will. But on the other hand if you had no intention of leaving your house to anyone and you just want to make your investment work for you then this sort of release is definitely for you.