We all want to live a comfortable life without any worries in our post-retirement stage. But, sometimes life may throw you lemons which you are not ready to face. Thus, the equity release schemes UK are the ideal solutions for those individuals who are going through some financial difficulty. This scheme allows retired personnel to release equity funds in lieu of their home. But, before you sign up for the scheme of release home equity, you need to meet certain requirements. To be eligible for this scheme, you need to be above 55 years of age and own a residence.
The equity release schemes UK are gaining huge popularity among senior citizens of the United Kingdom as they offer various benefits. One benefit which sets these schemes apart from the rest is it allows the retired personnel to continue living in their home even after they have released equity funds from their home. Another benefit of this release home equity scheme is the retired individuals can use the equity funds in anything they want. They can use it to purchase an item which they had always wanted or go for a vacation to their dream destination or even payoff previous loans. Thus, these are some reasons why this scheme is the most sought out by retirees.
Among the various equity release schemes UK, the most popular ones include Home Revision, Lifetime Mortgage and Interest Only Mortgage. In the home reversion scheme, individuals get to release the equity funds by selling a part of their property for an agreed amount. They can receive the amount as a lump sum, monthly installment or a combination of both. In this scheme of release home equity, the maximum equity funds they can release depends on the value of their property, their age, state of health and also the percent of the property they have sold to the home reversion company.
In the Lifetime Mortgage equity release schemes UK, the retirees will be get the equity funds based on their age and the value of their home. Since this scheme includes a much simple process, it is the most common one among senior citizens. If you sign up for this scheme, you are not required to make any payments provided you do not shift or decide to sell your home. But before you apply for this plan, remember that interest is added to the borrowed amount each year. Also, individuals who are older will be eligible for a large amount of equity funds. In the Interest-Only Mortgage scheme of release home equity, the individuals have to pay either a portion or the full amount of the interest charge applicable to the amount of equity being released, on a regular basis.
These above mentioned equity release schemes UK are the most sought out by the senior citizens of this country. But, before you enroll for this scheme, it is advised that you consult with a professional in this field. These experts will help you to understand each clause of the schemes of release home equity clearly so that you will know whether opting for them will be beneficial for you or not.
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Wednesday, September 29, 2010
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