Lifetime Equity Release
Are you a senior citizen, battling inflation and the increasing cost of living, with a reduced income?
Do you face an uncertain future, with mounting mortgage payments, electricity, gas and food bills, or a chronic medical condition that is too expensive to treat?
Well! You can breathe easy! The equity release scheme may be your passport to reach that dream post- retirement destination you worked so hard for.
What is Lifetime Equity Release?
Your greatest most valuable asset is your house.
- Equity or Lifetime Equity is simply the current market value of your house assessed by a Finance Company.
- Equity Release means encashing a portion of that value.
- Lifetime Equity Release is the once-in-a-lifetime agreement with a company to encash a portion of your House value. You have the option to receive cash as a lump sum amount OR as regular Monthly payments for the remainder of your life.
Priceless benefits:
The benefits you accrue from lifetime equity release are really priceless. The equity release lump sum amount is tax free. This allows you to enjoy the whole amount without getting worried or frustrated that a part of your hard earned money is taken away by the government. Moreover, you retain your loved home for the rest of your life. Only after your demise will the company gets the amount paid to you with interest from the sale proceeds of the house.
Are all eligible for lifetime equity release?
The answer is no. As in any other case, there are certain criteria that one should meet in order to avail this benefit. The four basic conditions that make you eligible for the lifetime equity release are given below.
You must:
- Be a senior citizen aged 55 years and above.
- Have an ownership of a house with a good market value.
- Have provided for hazards insurance cover
- Be a person paying taxes regularly
Interestingly, none of the above conditions look tough to meet.
Lifetime equity release fees
You will also have to pay fees for lifetime equity release. There are five such essential fees you need to negotiate:
- Solicitor’s fees for negotiating the agreement.
- Lawyer’s fees for verification, legal work and stamp duty.
- Property Appraiser’s fee for valuation.
- Appraisal, application and broker fees charged by the company.
These are unavoidable fees and are paid to ensure that you get the best deal. The key to saving money is to avail special offers and get the company to bear as much of the costs as possible.
The benefits of equity release seem obvious, but there are some important things you need to know before taking a decision. Most importantly, you may have to provide for dependant family members who automatically cease to be beneficiaries after an equity release. Approach only the regularized licensed companies for getting tax exemptions.
Remember, your decision can make or mar your retirement life, so consult only the best legal brains; engage only the most reputed firms.
The most important decision of your life beckons you! Act fast! Act NOW!