WRITTEN ON February 12th, 2010 BY admin AND STORED IN Uncategorized
When you are looking to free some money whether it is in a lump sum or in consistent income, or even both, you might want to think about an equity release mortgage plan. These are basically plans that release some of the money that you have tied up in your property so that you can take some of that funding for yourself. The amount that you can take is based on your age, how much your property is valued at, and the plan that you choose.
There are three main types of equity release mortgages available. The Lifetime Mortgage allows you to take a lump sum, tax free, from your property without having any added monthly payments. This money plus any interest only has to be repaid upon death or upon moving. The move is one that is wanted by the home owner, not a forced move and it is a permanent one, not temporary.
The Drawdown Plan is similar to the Lifetime Mortgage but it gives you extra flexibility. You will receive a cash reserve that is tax free. You can take money from this reserve when the times come that you need it. There isn’t a fixed payment schedule or lump sum distributed. This means that the interest that is adding up on the amount is kept to a minimum because you are only taking what you need.
The Home Reversion Plan is the third main type. This is when you agree to sell some or all of your property in order to receive either a lump sum which is tax free, or a regular income. You can live in the residence for the rest of your life if you wish to, but when the house is sold, the amount of money that you received will be taken from the cost and given to the reversion company. If there is an increase of value on the home, then the reversion company may take some of this as well.
Either one of these three plans are great ways to secure a good financial future. There are firms that can advise you on which one would be best for you. Expert Equity Release is one of those firms that can help you out with this. They are fully staffed with professionals in the field and will give you the best and most honest information and advice pertaining to your own personal situation.