Equity Release and Joint Ownership
A joint ownership equity release may provide retired homeowners with a useful source of income that can be used to supplement their pension. Using this agreement, the policyholder may either take out a loan with their house as security, or sell a portion of the home to a provider in exchange for a cash lump sum to spend on whatever they wish.
If you click on the link on this page you can fill out a simple form and get a competitively priced equity release quote today.
This agreement may seem particularly attractive for retired customers, as they may continue to live at the property for as long as they wish, or until they pass on. At which point the provider will take a portion of their estate from the sale of the property that will cover the cost of the loan, plus interest.
Using a joint ownership equity release, the property will only be sold once the last remaining member of the joint ownership scheme has either passed on or has been moved into care. Interest is generally based on the life expectancy of the youngest member.
Although the money gained from an equity release plan may seem very appealing for many property rich and cash poor pensioners. It is important to remember that these agreements are not without their disadvantages.
The following are some examples of factors that should be carefully considered before selecting an equity release policy:
- Taking out a joint ownership equity release will almost always reduce the value of your estate in the long term, and may mean that your relatives are left with less after you are gone
- Payments received for an equity release may not necessarily reflect the value of your home, you will typically receive less when compared against the value of your home
- Setting up an equity release will also typically come with an arrangement fee
With all this in mind, if you still want think that a joint ownership equity release scheme is the right option for you and your partner, you should click on the link on this page, fill out the form and get an equity release quote today.