Will you be retiring in a few years from now? You must be dreaming about fulfilling your passions. Some of you loved gardening but never had the time due to hectic work schedules. Some of you loved travelling but responsibilities of children and work chores have always hindered your thoughts. Now when you will be getting retired, this is the best time to pursue your dreams. But have you ever thought if you have enough money to support these dreams. Not many of us have done a huge savings during our work life as we always had lot of responsibilities. Then, you must be relying upon those pensions. But have you considered the fact that pension amounts have reduced significantly after the recessions? There is another way too if pension is less and you do not have much savings. That is releasing equity or Lifetime Mortgage.
Here is a bit of equity release information for your knowledge. Some people are blessed with their ancestral properties. Suppose you have such a property but you can not sell it as then you have to buy a new one. You can not put it in mortgage also as that may leave you homeless. Equity release will solve the above two problems. If you opt for releasing equity you can stay in your home as well as you will get money. This is because the organization that is providing you the deal will acquire your property after your death and by doing so they will recover the amount. By this way you can enjoy your retired life hassle free. But you have to be sixty years of age to enter into this agreement. Moreover there is another aspect of it, which makes releasing equity a very favored process of retired people. It is totally tax free.
Three types of releasing equity plans are available in the market. Let me give you a bit details.
1)Fixed payment lifetime mortgage: In this process the amount you will receive will be determined by your age, your health condition and your property value. 2)Roll-up lifetime mortgage: In this plan you will get a preapproved amount decided between you and the provider at the time of agreement. Once you receive the amount interest will be calculated yearly on that amount. The provider will recover the amount from your property after your death. The catchiest aspect of this releasing equity plan is interest rate is not floating so it will remain constant throughout the tenure. 3) Home reversion scheme: In this plan you can make an agreement with your whole house or a part of it. This choice is not available in the above two. You will get a sum of money against the part for which you are having the agreement. But you should keep in mind that the amount you will receive will not reflect your house's actual valuation. This is because the provider will take into consideration the fact that you will be living in the house for the rest of your life time.
As part of your equity release information, you must know the biggest disadvantage too. You will not be able to leave anything for your beneficiaries.
Jim Wright is a content writer on releasing equity. He keeps good knowledge on the equity release information. For more information he always recommends you to http://www.therightequityrelease.co.uk/