Are you a homeowner who could use some extra cash to fund your retirement or cover unexpected expenses? If so, you might be considering equity release as a financial option. Equity release allows homeowners to access the value tied up in their property without having to sell it. In this article, we will explore what equity release is and how it works.
Equity release is a financial product that enables homeowners, typically those over the age of 55, to access the equity in their property. It allows individuals to release a lump sum or regular income from the value of their home while still being able to live in it. The most common forms of equity release are lifetime mortgages and home reversion plans.
A lifetime mortgage is a loan secured against your property, allowing you to release a percentage of the value of your home. You continue to own your home and can live in it for the rest of your life or until you move into long-term care. The loan is usually repaid when you pass away or move into residential care. Interest accrues on the loan, which can be repaid monthly or rolled up and added to the outstanding loan amount. To find out more from an Equity Release Solicitor, go to https://www.tivoli.legal/
Home Reversion Plans
With a home reversion plan, you sell part or all of your home to a reversion company in exchange for a tax-free lump sum or regular income. You can continue living in the property for as long as you wish. When your property is eventually sold, whether upon your death or when you move into long-term care, the reversion company receives their portion of the proceeds.