Equity: 10 Mistakes that Most People Make

Equity: 10 Mistakes that Most People Make

Top Reasons for Taking Equity Release

If you are approaching retirement you have a number of ways you can start to reap from your investments. One such way of from equity release. Equity release is whereby homeowners are given the opportunity to release some cash benefits from their homes’ value. The best bit about equity release is that enjoying these cash benefits will not make you lose the ownership of your home and you will continue to maintain it.

Ideally homeowners have two main alternatives for equity release. The two options are home reversion and lifetime mortgage. In both options homeowners can decide to ring-fence a certain percentage of the property’s value to be shared among the heirs upon his or her death. This article highlights some of the benefits of taking an equity release scheme for home owners.

To start with having an equity release will allow you to continue owning your home. This gives you a chance to not only live in your home but also enjoy its financial benefits. Compared to selling your home and moving to a new house which is both emotionally and physically tiring equity release is the best option for aging homeowners. After all you may not be willing to be separated from your familiar neighbors and friends from your current location. Besides people do not like the idea of downsizing their houses since that extra space is needed when guests and grandchildren are around. All these options leave equity release as the most suitable way of getting money value from your home. When you choose equity release you keep your independence as well as the privilege of remaining in the family house.

Second you can have a certain level of luxury in life. This means that people with equity release can retire and relax since they will have attained their dreams. With the home cash benefits you can go for holidays in foreign countries, redecorate your home or even purchase a new car. For most people these are the luxuries they postponed during their working days because their jobs were too demanding or they had multiple financial obligations. After all you may find it better to gift your children with the money from equity release since you will see them enjoy it while you are still alive rather than leave them the inheritance when you are dead.

Third equity release gives you guaranteed returns. According to the equity release agreements you will never incur more than your home value and your children will not be left paying debts after you have died.

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