The old people no longer need to worry about their security in the twilight days of their life. The release equity has come to wipe out all the creases on the wrinkled foreheads. The house equity release allows the retired person to live a life of dignity without having to go from door to door for help. The retired individual can now arrange for the required sum of money from the very property that he or she owns. This market option has indeed helped the respective individual to enter the retirement phase to enjoy the true essence of the same in the right sense of the term. The worries pertaining to the old age are effectively resolved with this finance vehicle.
The release equity schemes are of the following types:
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Home Reversion Schemes
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Interest only mortgages
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Home Income Plans
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Lifetime mortgages
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Shared Appreciation Mortgages
The house equity release schemes have their specific services pertaining to the type of offer selected by the retired individual. Certain properties remain common to all the types while some vary as per the respective schemes.
The pre-requisites of the release equity are as mentioned below:
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The retired individual must be of 55 years age.
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The retired individual must not possess any outstanding credit in the market. This can lead to the reduction of the amount received.
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The condition of the property must be in a good shape to enable the retired individual to earn a lump sum amount of money. If the condition of the property fail to satisfy the respective authority they even as well reject the plea.
If the house equity release requirements are fulfilled by the respective retired individual then the authority grants the required plea and relieves the individual from a life full of worries.
The merits of the house equity release are as below:
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It allows the retired individual to get a regular source of income.
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It allows the retired individual to live in the same house in lieu of which the respective person is receiving the income.
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It relieves the heirs of the retired individual by reducing the heavy burden of the inheritance tax.
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It also buffers the life of the spouse of the retired individual in case the spouse has been included.
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It only goes for the repayment of the amount after the demise of the concerned individual or individuals. The repayment is got by selling the property mortgaged with them.
The release equity scheme therefore proves to be beneficial in all the ways imaginable. No doubt it enjoys such popularity.
The demerits of the release equity are:
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It penalizes the retired individual in case he or she wishes to break the deal mid way.
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It limits the retied individual in terms of investment. That is to say that this vehicle restricts the person from investing in the better income giving options like those of the stocks and shares.
However, if the house equity releasescheme is viewed as a whole; the more often than not the merits of the same outdo the demerits.
