It is a common problem for people nearing retirement age to be “property rich and cash poor”. For many people aged over 55s, an equity release scheme could be the solution to this, as they can allow policy holders to free up money that has been stored in their property and spend it on whatever they wish and potentially improve their standard of living.
If you are searching for a suitable equity release quote, it should be noted that there are two main types of equity release for over 55s available:
Taking out a lifetime mortgage would involve you taking out a loan with your property as collateral. You would then receive a lump sum, or could receive deferred payments on a drawdown lifetime mortgage. Your property would continue to be yours until your death or you move permanently into a retirement home. Following this, your property would be sold by the provider, with the proceeds being used to pay off your loan.
Home reversion scheme
A home reversion scheme involves you selling all, or part, of your property to a home reversion company. You would then receive a lump sum, which you could then reinvest to receive a regular income. You could remain living in your property, but would no longer fully own it. It may also be the case that you have to pay a certain amount of rent each month. Once you die or move into a retirement home, the property would be sold by the reversion company; the proceeds minus their share would go to your estate.
If you are interested in equity release, Please follow the link below for more information on these schemes and a competitive equity release quote.