The time has come when old age would not be a curse anymore,the lines of tension on those old foreheads will soon disappear. The solution to financial problems at a age when there are no fixed incomes coming into the family, and the price graph heading upward,is here in the form of equity property release and equity release loan.
In equity property release, money is given to you against the value of your property. The condition it imposes is that you can opt for this scheme only after the age of sixty. It provides you with the facility of withdrawing as much as you want unlike that of the pension scheme. It is basically the amount you have amassed in the course of time that you can withdraw in bits and parts, as per your requirements.
Equity property release has some schemes that are really good. The most popular being life mortgages. This scheme allows you to withdraw a huge amount of sum. The money that you borrow is repaid from the proceeds of the sale of your house, thereby freeing you of the burden of paying immediate interests as well.
The other mandates of the equity property release are firstly your property must be in favorable and good condition. Secondly, you must be in possession of any mortgage that is outstanding. Release of property equity value also is a much safer option as compared to stock markets as all the dealings here are done in writing. The only thing you must keep in mind while opting for equity property release should is that you must inform your family members of your decision, so that in case you fail to give them their due share there would not be any misunderstandings. Such misunderstandings often ruin lifetime relations.
Next comes the equity release loans, the age bar for these loans is at least fifty five years. The other mandates for equity property release are that firstly the house must be in a spic and span condition as the amount you get out of it is directly proportional to the condition of the house. If the house is in a dilapidated condition the plea for an equity release loan may even get rejected. Secondly comes in the age factor, the more aged the applicant the greater value can be extracted out of the scheme. Thirdly the amount you shall get also depends on the current value of the property. If there are any mortgage dues left the amount payable will be deducted from the total loan amount.
The advantages of the equity release are that firstly these loans do not require a pay back within your lifetime. It is not mandatory to pay monthly installments, however if you find it convenient to pay back there is no rule against it. Secondly, you need not vacate your house even after opting for equity release loans. In case your partner is involved, he or she would not be thrown out after your demise. Rather the lenders will wait till his or her demise as well.
Thus if an overview of both the options available to the retired is taken, both are more or less similar, varying only slightly in some of their mandates. Both serve the purpose of easing the financial burden of the aged making their last days count in a positive manner.
