Is Releasing Equity Truly Beneficial?

By Author: Jimwright
Total Articles: 100
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Fetching food for several siblings and becoming dependent on the next generation when you are old are two of the worst situation that you can face in one lifetime. When you are getting older, there are not only health issues to deal with, but there are several mental issues as well that haunts you day and night. One of the most vital issues that you might face when you are old is coping with the financial needs. Money is important for a good living and a tension free ending too. Keeping this situation in mind, releasing equity of the property is important as that offers some great help in the time of need. There are indeed some great features of the equity release schemes which you must be aware of if you are planning to apply for yourself.


The Equity release guidance in this case is a must so as to enable you to enjoy a good and peaceful life even after you have retired from your employment. The pension is a meagre source of income and that is not always enough to survive a life hood. Thus relevant advice in terms of the Equity release will help you in taking an appropriate decision about yourself as well ...
... as your property. So, whether releasing equity is a suitable option for you or not, whether you are eligible for the facilities that the Equity release scheme offers etc are some of the most vital questions that must be answered.


The Equity release scheme allows you to enjoy a secured and an independent life even after retirement. It gives you a chance to remain at your property until the day of your death and also enjoy a monthly regular payment in the form of instalments. The Equity release plan is nothing but an agreement between the lender and you which says that the lender will be paying you a lump sum as per the valuation of your property, but after your death, the property would belong to the lender. The eligibility criteria for releasing equity is rather simple, you must be 55 years or more of age. The property must be owned by you and it must be in a presentable condition. The lender will send in a valuation team as soon as they receive your application for the Equity release scheme. Depending on the evaluation done, the lender will offer you the Equity release amount. Remember, that the property that you put up for releasing equity will be disinherited by the children of yours. The children will no longer have any rights on the property and it will belong to the lender.


This income that you make from releasing equity is absolutely tax free and is given along with the regular pension amount. It is in fact an opportunity to earn a good sum of money in lieu of your property without taking any stress personally or professionally. If you invest the income that you received from the Equity release scheme, that investment would be taxable as per the tax law of the country.