Equity Release Schemes - Release & Home Reversion

By Author: Dave Woods
Total Articles: 324
Comment this article

As you grow older, you may be tempted into releasing a number of the equity in your dwelling. This is a huge move for anyone. As such, it is critical that you think about talking about it first with your family in addition to taking counsel from a financial advisor.



Old age usually comes with so demands that have to be met such as healthcare bills, taxes on property and utility bills amongst others. However, with diminishing income it then becomes difficult to meet some of these expenses. Borrowing from a bank is also out of the question given that you do not have a steady income. Therefore, releasing some of the equity held in your homes may seem as the most viable option. Still, it is a big decision to make.



Different types of equity release products



There are basically three major classes of equity release product in the market presently. It is highly recommended that you search for an equity release product which has not only received industry approval but also displays the SHIP logo (i.e. Safe Home Income Plans). The Safe Home Income Plans ...
... (SHIP) is an organization that has been created with the sole purpose of promoting secure equity release schemes. Companies that are affiliated to the organization usually offer a couple of guarantees such as the right to reside in your home for the rest of your life as well as the freedom to shift to a different property without having to incur penalties.



The following are the three main groups of equity release products:

Home reversion plans: This product allows you to sell your property (or a portion of it) in return for regular earnings or lump sum. As such, you turn from being a homeowner to a tenant residing in his or her own home.
Home income plans: This product allows you to take a home loan against your house and utilize the cash to purchase annuity.
Lifetime mortgages: This product allows you to receive regular income.

About the Author: Dave Woods writes about equity Release schemes. To know more, please visit http://www.mwgb.co.uk/.