Is Equity Release Right For You? A Guide To The Advantages

By Author: Edward Bradley
Total Articles: 2
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Equity release is a means to take out a loan on the value of your property. You are allowed to take this loan, which is in most cases completely tax free as a single lump sum payment or in instalments. You are not required to pay back the cost of this loan as you would with a regular loan. With equity release schemes, your loan, alongside the interest, is repayed when your home is sold when you die.

You will find a selection of forms of equity release products available. All of them have their advantages and disadvantages. Although equity release schemes can be a valuable source of income to some, the drawbacks must be considered carefully before you sign up for such a scheme. An equity release scheme is not suitable for every home owner. With this in mind this guide will take a look at the main plus points of such products, to give you an overview of the benefits of these schemes.

For most people, your home will undoubtedly be your most valuable asset, and this means that your property can potentially earn you a significant amount via such schemes. The single cash lump sum or regalar monthly loan payments you ...
... will be granted from equity release will usually be tax free and you are free to spend this money on anything you want.

Many equity release products do not ask you to repay the money you owe until your property is sold on when you die, although you may have to pay for initial fees that are in place to cover the cost of processing your loan agreement.

You are free to remain in your home for the rest of your life, rent free. Essentially this makes you a tenant in your own home. In addition, depending on the the type of equity release scheme you choose and the individual terms of the scheme that you choose, you and your spouse may also be permitted to move home if you want to subject to certain conditions.

Depending on the level of money you and your spouse originally wish to withdraw, you may also be able to withdraw further payments at a later stage.

Frances Howardson is a financial planner and finance blogger. If you are considering releasing equity from your home, they recommend seeking further advice from equity release providers specialist Bower Equity who offer impartial advice regarding all major equity release companies. For more details visit http://www.brsequity.co.uk