Are you property-rich, but cash-strapped?
Well, the best and simplest way for you to access tax-free cash is through unlocking the equity from your home or at least that’s what the adverts say.
However, even with the shocking number of people taking out equity release, is it the solution it’s cracked up to be?
Well, after ten expert consultations and more than a hundred consumer reviews, here’s a comprehensive guide by John Lawson, Equity Release Expert from sovereign boss, on why you should consider taking out an equity release plan today!
The Lucrative Benefits of Equity Release Schemes
Equity release plans are quickly becoming the most-sorted way to unlock the equity from the value of your estate. You can enjoy the advantages of having built such equity, while still maintaining proprietorship, and the most incredible aspect of it all is that you get two options to choose from!
You can opt to take out a lifetime mortgage scheme that allows you to unlock the secured loan on your estate or a home reversion plan which mostly involves mortgaging a portion of your property.
These equity release plans provide you with the financial freedom to take capital from the equity of your estate and spend it as you wish.
Moreover, that’s not all the perks of having an equity release scheme.
#01. Equity Release Allows You to Enjoy Your Retirement Without the Constant Worry About Funds
When getting a loan from the bank, most institutions require you to provide a business plan so that they can give you full access to funds.
With equity release, however, how you spend your cash is up to you and your financial plans. You can choose to do whatsoever you want.
If all you’ve ever wanted was to go on a cruise with your spouse, open up a restaurant, or finish paying up that accumulating mortgage having a lifetime mortgage or home reversion scheme provides you with this financial freedom and more.
To about 40% of retirees though, equity release is a way of gifting their kids, now, rather than later and seeing them revel in bringing up their grandchildren without the financial constrictions that the 21st Century and all the changes it's currently imposing.
#02. Guaranteed Returns
In addition to the above perks, equity release schemes offer you several valuable guarantees throughout your life. It can be the guaranteed interest rates for the life of the lifetime mortgage plan or the no negative equity guarantee that makes sure that any equity release plan your lender offers you is adhering to the Safe Home Income Plan (SHIP) regulations.
In a nutshell, the no negative equity guarantee scheme guarantees that your beneficiaries won’t ever incur any debt over & above the estate market value at the time you took out the loan once you breathe your last or decide to move into long term care.
#03. With All the Rules and Regulations Concerning Equity Release, It’s One Of The Safest Decisions You Can Make
In the present day, the equity release market’s regulated by the Financial Conduct Authority (FCA), and most plan providers are signed up to the Equity Release Council, a trade body that sets the standards for equity release plans.
As part of these principles, the Council stipulates that:
All interest rates must be fixed, or if flexible, there must be a higher limit or cap that is set for the life of the mortgage
You have the right to reside in the property for life, or until you move into residential care, just so long as you abide by the terms and conditions your lender stipulates
The lifetime mortgage must come with the ‘No negative equity’ guarantee
Taking out equity in your family home can be a daunting choice to make. However, with the stipulated guidelines and monitored transactions, you need not worry. It can be one of the smartest decisions you will ever make, and with all the benefits you are bound to gain, your retirement could not be any more fun and incredible.
So, what are you waiting for, give your financial advisor a call today, and make your retirement your golden key to happiness!