Are you going to retire in coming few years? Have you ever thought of your retired life? Are you thinking of pursuing your dreams you have kept wrapped up throughout your service? The time after retirement is best to live for yourself. There will be no office chores, no tight schedules. You can start your course of gardening and decorate your lawn with all the flowers you like. You knew driving but didn’t have a car. Now you can brush your skills in that and go for that much awaited long drive to the country side with the beloved person. Enough with dreams now let me bring you back a bit to the harsh reality. Do you have enough savings for these? Do you get enough pensions to enjoy this well earned leisure? Lot of hesitations must be coming to your mind now. Recent recessions have affected the pension amount hugely and lots of retired people have faced this problem.
Some of the retired people have the privilege of having ancestral property now owned by them or a property bought by them at a young age. But is it possible to sell the property you are living in? Can you afford to take the risk of giving your property in mortgage? I suppose the answer will be no as in both the cases you will be having a chance to loose your only address. A unique financial product is there in market to solve this issue of retired people. It is called release equity in home which is sometimes referred to as lifetime mortgage too. You must be wondering how on earth that will help you anyway after you retire. Let me show you what this plan has to do with your property.
Suppose you own a property. As said earlier, it will be very difficult for you to sell or enter into a mortgage with that. But you can bravely approach any organization for their best equity release plan. By settling this plan you can live in your house till your death and the organization issuing the plan will also provide you money for fulfilling your dreams. You must be thinking what the company’s profit in issuing this plan is? Let me tell you then, your property will be acquired by the company after your death to retrieve all the money they have paid to you during your retired life. They will also make their profit as they will only provide money you need but your property’s actual valuation will not be made. Moreover due to inflation in economy your property will yield them a higher value than its current value today.
Now when you have got it clear let me give you some details. There are different types of equity release like Home reversion scheme, roll-up lifetime mortgage or fixed payment lifetime mortgage. In these mentioned plans you will get the much needed money based on some complex calculations. These calculations include your property value, your age, health etc. you can find out from your agent which will be the best equity release plan for you. You should also consider some of its drawback. Once you enter in an equity release plan you will be left with nothing to pass on to your heirs.
