Life is a compilation of different emotions just like a hand consisting 5 uneven fingers. If you are happy today that doesn’t mean that you will be happy the next day also. If we divide your life into 5 phases like 5 fingers of a hand and starts from the little finger that is the childhood: tender and short; then comes the ring finger the life of education: firm and broad; then the middle finger indicates the long life of profession and family: longest and strongest; then the index finger represents the life towards old age, and finally comes the thumb, it suggests the old age, the age of retirement. Like a thumb the old age is illuminated and disconnected from the entire journey of life. This needs extra care and protection. Release of equity through equity release plans is the perfect weapon to fight the complications of old age.find this
When you are standing on the threshold of retirement, have completed 55 years of your life and owner of a property, you can erase your wrinkles with the help of release of equity. Equity release is process through which you can release a good amount of money locked up in the valuation of your own property without selling it until you die. There are different kinds of equity release plans available, such as:
Lifetime mortgages: applicant can secure a loan from his own property. He/ she remains in the owner till he/she dies and bares the responsibility of the house with the lender.
Interest only: a mortgage is made and when the owner dies the lender takes back the capital by selling the property.
Home reversion: here release of equity is arranged for making a regular income for the elderly.
Shared appreciation mortgage:this is one of the equity release plans on which the borrower stays on his own property and gets a share of amount.
Home income plan: a lifetime mortgage where with the capital annuity is purchased.
Release of equity is good for your life after retirement. But when you are proceeding to buy any plan hire a reliable equity release provider. He can make you aware of the different types of equity release plans properly. They can suggest you the best plan according to your financial requirement, health condition, familial status and property size.
Release of equity has many advantages, such as:
A tax free income for the old age,
A good lifestyle due to fixed stream of income,
No negative equity guarantee etc.
To know the amount you can release from your property you can take the help of equity release calculators which are available online. By providing some details of yours you can easily make yourself aware of the valuation.
Equity release plans are very beneficial if the person doesn’t have any successor who have claim over the property. Applying to any of the plan according to the individual needs the elderly can get relief from the stress of old age.