UK Property Market

Archive for May, 2010

Get a monthly fixed income with home equity release

posted by easmgr in Uncategorized
Get a monthly fixed income with home equity release

Home equity release

Generally these kinds of loans are taken up by those people who are above the age of 55. Once you apply for the loan you can either get the entire cash in one shot, or get the same amount in the form of monthly installments. These installments will work like a monthly income for you. With this cash you can fulfill any of your urgent needs like medical, daily expense etc. Here you don’t have to take the pain of repaying the loan as once the borrower expires, the home will automatically get sold, and the loan will be paid off.

Here, the interest rates will get rolled up in due course of time and get added to the actual loan amount. However, here you don’t have to pay off the interest rates as once the home is sold off the interest rates will also get sold off. The best thing about home equity release is that once you get the loan you don’t have to leave your home, you can enjoy it till your last breath. So, the home ownership remains with you even though your home is mortgaged. Another advantage related to home equity release is that the cost related to this loan is lower than many other loan schemes that are available in the market.

is a financial tool that helps senior citizens to lead an independent life without taking anybody’s help. According to the home equity release scheme, you can get a huge lump sum amount as a loan on the basis of your home equity. The home equity is determined on the basis of the difference between the actual value of the home and the outstanding mortgage. After deducting the outstanding mortgage from the home, you will get the loan on the basis of your home’s current price and also your age.

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Home equity release-a good option?

posted by easmgr in Uncategorized
Home equity release-a good option?

Currently many old people haven’t got much money to live on. Their pensions may not cover costs adequately, or they want to raise the extra cash to enjoy retirement and go on cruises and holidays. Despite having little funds and pensions, they may possess large houses which are valuable assets with money locked in them.

Releasing home equity allows this money to be released, so the money can be used for home improvements, holidays or can be spent on the grandchildren, while being able to live in their own house. The other option would be to downsize, sell and buy a smaller, but that would be costly and may involve lots of hassle of finding a buyer and taking months to complete for instance.

Releasing home equity allows money to be paid in small, monthly amounts, or in one big lump sum. A lump sum which could be thousands will allow for large purchases like cars, cruises or holiday homes while smaller payments like a couple of hundred pounds a month may add to a regular income for extra groceries, heating or buying small gifts for the grandchildren.

To be eligible for an Equity Release Plan (ERP), a person needs to be at least 55 years of age, have a property in good condition with no outstanding mortgages or loans. They may be offered by individual companies or by larger monetary companies like Aviva or the local bank.

An ERP is good for any pensioners because it avoids downsizing, so no moving is involved to release equity, often there is no tax on the cash from this process, plus the equity released can be utilised if going into a care home, so the children don’t have the burden of paying these expensive bills and it also means not having to sell the house to pay for these bills. The ERP does not mean there is nothing left in the estate for the family inheritance, the house can be sold, the funds can pay off the ERP and there is still cash left over for the family.

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