As the years unroll, asset-rich homeowners aged 55 years old and above are increasingly turning to equity release as an option of obtaining loans to not only supplement their financial shortcomings but also fulfill other obligations they have set. Some of these obligations are focused on benefiting their personal retirement goals, or the aspirations they have in place for their progeny. Being a loan that will be facilitated upon the death of the loanee, a few guidelines to apprehending all that equity release entails include:
There are two types of equity release, learn to delineate the two
If you are the DIY type of individual, hence would like to dig into content entrenched in books among many other types of resources available covering equity release, then you need to focus your attention in mastering the distinction between lifetime mortgage, and home revision plan equity release. On a light note, the former is the most common type of equity release and entails borrowing a lump sum amount of money from a scheme equivalent to a certain value of your home, while retaining 100% of your home’s ownership till death.
Home revision plans, on the other hand, constitute less than 5% of the market and entail selling the whole or part of your home to an equity release scheme while retaining the privileges of occupying the property rent-free for the rest of your lifetime. Either option you choose, both bear their own advantages and disadvantages.
Leverage on the services of reputable equity release centres
Since knowledge is perfected when coupled up with firsthand experience, it is advisable that you seek the services of reputable equity release centres to guide you through understanding and securing an equity release. Since wrong choices could cost you or your generation dearly in the near future; consider schemes with solid experience in guiding clients through Responsible Equity Release. Let them outline the cost-benefits of responsibly acquiring cash at the expense of your property in the long run.
Always look into the statistics on matters pertaining equity release
There are lots of statistics involved in equity release, an aspect which should be at the top of your ‘to know’ list. Since figures give a clearer scope of every aspect that pertains equity release such as the amount you can comfortably release, the value of your property in the future if all factors are kept constant, the amount of interests accrued over time, and much more; be always adamant to related any equity release benefits with the real figures they reflect in reality.
Get your family members involved
Finally, since equity release is a decision which if you choose to pursue will positively or negatively impact your family members, get the aboard scrutinizing the process as they can be better placed at coming up with various insights on how responsible procure an equity release. Remember, to make them part of your chief considerations as you procure finances that will be useful to both you and the family as a whole.