The benefits of Equity release

Equity release is a method by which money can be released from home & yet you can live there until you die. Benefit of the equity release scheme is that you can be as old as over 60 & yet you can sell your property, get the money & yet not pay monthly payments. Even taxes need not be paid since the money received is on the house owned by you as well. Home reversion scheme of equity-release is allowed as you go over the age of 65. It allows you to sell a certain part of your property while leaving the rest for your beneficiaries. There are various types of equity schemes-lifetime mortgage, draw down lifetime mortgage & house reversion plan. 

Lifetime mortgage allows you to take a solid sum of money initially. But interest will keep adding to the capital & as a person moves to long term scheme his loan is repaid. Drawdown lifetime scheme is also similar to the earlier one except for the fact that you need to pay interest on the money you take. But in this scheme you may not wish to take the entire amount together. In the home reversion scheme a person need not pay taxes or interest. Only the ownership is transferred. The company gets their money back only after they sell the property after the home owner’s death.

Equity-release has many benefits. It is a loan which can be taken for any purpose for example after receiving the money you can use the money in any which way that you like. You can use it to improve your house. It may be used for paying off an old debt to reduce pressure of monthly outgoings. It may also be used for increasing additional income or to pay for an urgent medical treatment required. Sometimes it may be required as help for the family. But the biggest advantage of equity release is that you never have to shift houses. 

As you have many sentimental values attached to it. Sometimes people in need of money sell their house & go to a cheaper area but that is one sacrifice you need not make here. Equity calculator is a tool by which you can calculate how much money you can get on your property. An equity release calculator helps you to understand if you can get the benefit of equity. For that though, you need to provide the equity release calculator with all the information. An equity release calculator allows you to find out which of the above three schemes are best suited to you and thereby choose the best deal.