How to Release Equity
Equity refers to the value locked up in your home or property. The release of this equity means that you can get additional income by claiming back some of the equity invested in your property. Equity releases are offered to people over the age of 55 who may be retired and lack the financial security of a regular income. The money released can be used in any way the homeowner wants as there are no restrictions on how the money should be spent.
Learning how to release equity from your home can help you to cover daily expenses or help to pay off outstanding debts that are racking up interest and costing you unnecessary money.
Learn how to release equity:
There are a number of criteria you need to meet before you can apply to release equity from your home:
• You and your joint applicant must be over the age of 55.
• Your property must be worth a certain amount of money (determined by your specific lender).
• You house is built using standard construction materials and is well-maintained.
• Your property is leasehold or freehold.
• You live at the house from which the equity is drawn and have lived there for over 6 months.
• You don’t have any other mortgages or loans secured on the house that exceed the amount of money you can release.
If you meet the above qualifications, you are eligible to learn more about how to release equity. The next step is to decide which type of equity release best suits your purposes – either a lifetime mortgage or a home reversion plan. A lifetime mortgage can take the form of a roll up mortgage, an interest only mortgage , fixed repayment loan, or a home income plan; a home reversion plan means that you are able to sell your property to the lending company, who will give you a choice between receiving a lump sum or monthly additional income.
Learning how to release equity can prove a valuable decision for older people who are struggling to make ends meet or have debts to pay off. When considering taking out an equity release, it is best to make an appointment with a professional consultant who can advise you on the best equity solution to suit your needs.