Yes, the blogs and adverts are right!
Equity release is one of the most incredible financial products ever offered to man. If you’re over 55 and looking for a way to fund your next home remodel, equity release might be for you.
However, even with all the fantastic perks, it can be difficult trying to understand how equity release works, its benefits, among other things.
Moreover, considering the numbers of hours, you have to spend researching, and the expenses that come with professional consultations, getting by this financial plan can be a daunting task.
Well, by checking out this comprehensive guide, you can finally get to know how this scheme works and its numerous perks without having you break a sweat or your bank.
Be sure also to pop over here to get the hang of this equity release frenzy and see how much equity you can release with the equity release calculator.
Using Equity Release to Fund Your Next Home Remodel
Equity Release Explained
Equity release, in a nutshell, is a mode of releasing the wealth tied up in your estate without having to relocate or putting it up for sale, which you can do via series of dogmata that enable you to acquire- or “drawdown” the money at a later date, based on your necessities, and if you are over 55. If you meet all the requirements for taking out equity and you’re wanting to find out how much value is tied up in your property that you could be entitled to, make sure to look at the various equity release calculator options you can find online.
The Benefits of Taking Out An Equity Release Plan
#1. You Get to Reside in Your Estate, Rent-Free
One of the most significant benefits of taking out an equity release scheme is that you have the right to reside in your estate while also enjoying the financial perks from it.
It’s been proven time and time again that by selling or relocating to a new environment after spending close to twenty years in a particular town or place can have immense emotional as well as physical constraints on an individual.
Moreover, there are costs involved in moving to another home. For instance, you pay solicitors fees, removal costs, stamp duty & the emotional price of up-rooting from somewhere that you have spent the majority of your life bringing up your kids & other family-related matters.
Equity release offers you the freedom to continue residing in your residence while also maintaining your independence.
#2. You Get to Live a Life of Luxury
Those who take equity release schemes can fulfill their dreams, to retire & relax. Some choose to go for holidays to exotic locations like Thailand, Egypt, Maui, among other places. Others opt to get themselves gifts like a luxurious car or motorbike, or even carry out home improvements including redecoration of their estate.
For some, it can be as simple as pleasurable spending cash on their family by way of gifting to the kids now, rather than later and seeing them enjoy bringing up their grandkids without the financial constraints that today’s society is imposing.
#3. You’re Guaranteed Returns
Almost every equity release scheme offers you the benefit of having guarantees throughout your life. It can be the guaranteed interest rates for the rest of your lifetime on the lifetime mortgage plan. There’s also the no negative equity guarantee that every plan provider under the ERC has to offer. It ensures that all equity release schemes adhere to the Safe Home Income Plan (SHIP) regulations.
The ‘no negative equity guarantee’ makes sure that your beneficiaries won’t ever incur any debt over & above the estate value once you pass on or move into long term care.
#4. It’s Flexible
One of the most common reasons people opt to take out an equity release scheme is because they are so flexible – you won’t be told what you can and can’t spend your tax-free money on – it’s entirely up to you.
It’s also probable to release your cash as and when you need it via a drawdown plan, instead of as a lump sum.
Like any other financial product, equity release isn’t something you should make rash decisions. Therefore, you should take your time and consider your options before landing on the decision to take a particular plan.