Equity Release – An Easy and Effective Way to Secure Your Twilight Days
The majority of the senior citizens especially who belong to the lower middle class undergo financial hardships in their post retirement phase. With prices of the essentials springing up day by day, they no longer feel financial buoyancy rather a stagnancy in income. Such a problem is a major hindrance to enjoy a comfortable retired life. The best way to nip the trouble is to opt for an equity release policy.
Release of equity may sound a Hebrew term to some but a familiar one for many, thanks to the millions of sites popping up on the net regarding this subject. Equity release is an ideal choice for the aged homeowners. They need additional fund to improve their dipping living index. They can easily do so by releasing the tied-up equities within the properties. The flushed out equities then get converted into cash and thereby appending to the monthly income of the retirees. The entire process is simple to understand, easy to perform and effective to provide the retirees with a balmy touch in their twilight days.
The retired persons must be fifty five years old in order to purchase an equity release policy. They must own the properties which should be in a good condition to appeal to the prospective lenders. There is no upper age limit in this case, on the contrary the more aged a person is, the more cash he/she can raise through an equity release policy. The volume of cash earned by releasing the equities depends on the age of the person and the current value of the property. As the real estate property value is jumping up with every passing day, so what you will gain through an equity release scheme will not be a slim figure but a decent amount.
As the outstanding mortgage loans are deducted from what can be raised from your property, so it is better if you have nil mortgage loan. Such a situation is also preferred by the lenders. In case the due amount is a paltry figure, you will have no problem to secure money through an equity release scheme. With no strict rule regarding the mandatory repayment within the lifetime, you do not need to worry about paying the loan off. But it is good if you repay the entire or at least a significant part of the loan. In that case, your heirs will be able to inherit the property.
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