The Truth About Equity Release
As we grow older, our retirement funds get smaller and the cost of living continues to rise. One of the equity release facts is that it can help you pay for your needs in old age by releasing some of the money from your home so that you can continue to live there comfortably. Equity releases are also a good option if you have high property taxes or want to leave assets for children who need them more than you do.
You can also use equity release to pay off debt, help your children buy a house, or make investments in property.
To be eligible for equity release, you need to be at least 60 years old, own your home outright and have a sufficiently large amount of equity in the property.
The process takes about 12 months and starts with an application form which includes details such as how much income and capital worth they currently own. Once accepted onto the scheme, proceeds will be released gradually until everything has been used up – often until death occurs when this would happen automatically anyway.
One of the major reasons for using an equity release is to help you pay for costs associated with living during retirement. One way this can happen is when people who are already retired want to release some money from their property so that they can continue to live there comfortably without having to worry about paying high taxes or leaving assets behind if they die before realizing their full life expectancy. Equity releases are also helpful when someone has inherited a house worth much more than what it owes as mortgage, because then he would receive government grants on top of whatever proceeds come from selling his home.