Time To Lock The Security For Your Future

By Author: Ethan Carter
Total Articles: 3
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Thinking hard how to sustain post retirement with just a mere pension in today’s time? Don’t burn your night candle thinking hard about it, equity release plans are there for your rescue. Life has always been a roller-coaster ride for you and it will continue to be so even post-retirement and how? The oldies post-retirement are “property rich but cash poor” so what they can do is to release equity from property helps a lot. Sigh! But one should always remember that you need to own a property before thinking of the various equity release plans.



What is equity release?


Equity release is nothing more than drawing money form a property or asset that ypu own which has a certain amount of capital value in market.



Types of equity release plans?


It is important to know the various types of equity release plans before you take your call.

Lifetime Mortgage – The benefits of this scheme can only be enjoyed by people who are above 55 and ...
... the amount can be received only when you pass away of permanently vacate the house. The good news of this plan is the amount of money you release is tax free, what’s more? There are plans that let you guarantee an inheritance for your family.
Drawdown Lifetime Mortgage – this plan however offers more flexibility because through this scheme one can have a greater accessibility towards the money. Rather than releasing the lump sum at one go you have the benefit to release some portions of the money as and when you wish to do it.
Interest-Only Lifetime Mortgage – This kind of a plan assures inheritance protection. This retirement plan seems a sensible option for those looking for an alternative plan to roll up their equity release schemes. But be careful before vying for this equity release plan and go for it only when you think your pension income is sufficient and you don’t want to reduce your beneficiaries’ inheritance. Then ‘go’ is the word for you!
Home Reversion Plan - This plan is on for the age bracket of 65. It is different because in this plan you exchange the ownership of either certain portion of your or your entire home and draw money based on that. Say ‘yes’ to this plan and ‘bye bye’ to rent but at the same time you continue to enjoy staying at your home.

This plan is worth it because it solves one of life’s biggest problems post-retirement.