Equity Release
Equity release is a way to release cash from the value of your property. It is an agreement between a ‘provider’ and the homeowner whereby the homeowner gets some of the value that is stored in his home. A lifetime mortgage and home reversion plan are the two basic forms of equity release.
Through lifetime mortgage, you can take a cash lump sum against your own house. You can continue to own and live in your house and the loan is repaid when you decide to sell the house or upon your death. There are no monthly payments required with a lifetime mortgage loan under which the interest is added to the loan either monthly or yearly and is only repaid upon the borrower’s death, sale of the house or when the borrower decides to move out of the house.
Home reversion plan is another form of equity release. Here the owner sells his home or a part of it to the reversion company but retains the right to live in it for the rest of his life. The money received may either be paid in a cash lump sum, a monthly income, or a combination of the two.
There are various pros and cons that need to be considered before opting for equity release schemes and a professional financial service must be contacted before you opt for one. You may consider taking Equity Release Advice from a financial expert, his experience and knowledge in the field can be utilized to know best possible options for you and have a fair and impartial Opinion on the same.
Since Equity Release is an easy option to raise money and meet foreseeable future needs, lots of people in UK are considering the same. There are numerous advising companies that offer services in helping you evaluate the value of your asset and come up with a best price option and also help to assess if going for a Equity Release is best solution or not. The companies usually offer free initial consultation to know more about your requirement and access your needs. Although as an individual you are the best judge of your situation but it is always advised to take some professional advice before you go for Equity Release UK.
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