- Lifestyle Villages In Kingscliff
Equity release fulfilling your dreams after retirement
Are you going to get retired in the coming days? If so then you must be dreaming of those unfulfilled passions which were buried inside your heart due to work pressure. A long drive to sea side or building up a beautiful garden and many more must be in your thoughts. A long waited leisure is on your way and you must be thinking to make the most of it. A romantic holiday to Italy can be a nice way to celebrate the retirement. Let me hit you with reality amidst these beautiful dreams. In this present world anything you want to do needs money. Do you have enough savings to pursue your dreams? Will you receive enough amount of pension? If not then how will you arrange money for your dreams? If you are blessed with an owned property then that can help you.
No, I am not suggesting you to sell your property and remain homeless to fulfill your dreams. What I am talking of is a financial product known as equity release or lifetime mortgage. When the huge recession hit the market the pension amount for retired people reduced heavily. To cope with this problem equity release invaded the market. Suppose you own a property in which you live. But you can not sell it or give it in a mortgage because that will create a chance of loosing your property if you cannot repay the loans. But if you enter into an equity release agreement you can live in your home and get paid for that too. It is not a miracle. With this agreement you will commit that after your death the property will be owned by the organization with which you did the agreement. The organization will pay you the value of your house on present day. When they will sell your house after you death they will obviously get a much higher value and thereby that will create their profit amount. The most important aspect of equity release is the product is fully tax free.
There are various
equity release solutions
available in the market. You can choose from any one of them based on your requirement.
- 1)Home reversion Scheme: in this equity release solution you can have the option to deal the whole of your house or a part of it. You will be given the evaluation amount of the money for the part you are dealing with. The organization will profit by selling that part after your death. 2)Roll-Up lifetime mortgage: This is the solution in which you and the agreement provider will finalize an amount for your property and the provider will pay that to you. The interest rate will remain fixed throughout. 3)Fixed Payment lifetime mortgage: This solution will provide you money based on your age, your property s condition and your health.
There are some disadvantages also. You will not be in any position to pass your property to heirs if you opt for
solution. Despite that, this is the best way to materialize your dreams after retirement.
Jim Wright is a content writer on
equity release solutions
. He keeps good knowledge on the
. For more information he always recommends you to