Equity Release In Scotland
In Scotland, equity release functions on the same grounds as equity release does in England and Wales, with two different types available for people who are about to reach the age of retirement. Equity release is a useful way of ensuring that you maintain the same standard of living for the rest of your life.
It was reported in 2008 that the demand for equity release in Scotland had increased by 141% since 1999. For people who have repaid the entirety of their mortgage loan, taking out an equity release plan is an effective solution to debt problems and helps to cover the cost of daily living expenses.
The two types of equity release policy that are available in Scotland are as follows:
- Home reversion plan – you sell a percentage of your home to a reversion company or financial provider and receive a lump sum or gradual income for the rest of your life.
- Lifetime mortgage plan – you take out a loan against the value of your property in the form of a lump sum. Your loan is repaid when your financial provider sells your home after you pass away or enter a full time care home facility.
If you are searching for a suitable policy, follow the link below for a competitive equity release quote.
There are advantages and disadvantages that apply to both types of equity release in Scotland. Some advantages of these equity release policies are:
- You can enjoy the rest of your life without worrying about how to finance your day to day expenditures.
- You can continue to live in your property for the rest of your life
There are, however, some disadvantages in taking out an equity release:
- The value of your property is reduced and if you have dependents, they may receive a reduced inheritance.
- The payment you receive may not accurately reflect the current market value of your home.