Equity release in Braintree has a number of clear benefits. With this in mind, this article by Laura Richardson looks to explore some of the benefits of equity release in what follows.

An Equity Release plan allows homeowners over the age of 55 to access a percentage of the equity in their home in order to obtain a cash amount either in the form of a lump sum or regular cash payments over a period of time.

There are two types of Equity Release Plan, firstly a Lifetime Mortgage and secondly a Home Reversion Plan. Under a Lifetime Mortgage, the home owner takes out a loan against their property. A Home Reversion Equity Release Plan involves the homeowner selling a percentage share of their property to a company in order to release funds from that share of the house.

So, if you choose to take out an Equity Release Plan what are the benefits?

  • You can use the released cash for whatever purpose you choose. According to a recent survey by a leading financial advisory company, nearly half of Equity Release Plans are taken out in order to clear an existing mortgage, whilst other stated reasons included home improvement, taking a holiday, improving general lifestyle and putting the released funds into a savings account in order to provide a financial backup.
  • You can remain living in your own home, with no need to move house in order to access funds from the equity of the property. Moving house is stressful and can be costly, plus your home may have been your ‘family home’ for many years, so being able to remain in your own home is an important benefit to many people.
  • There are usually no repayments made during the homeowner’s lifetime. The loan is repaid, plus accrued interest upon the death of the homeowner as part of their Estate debt.
  • Many Equity Release Plans come with a ‘no negative equity guarantee’. This means that if the sale of the property does not cover the cost of the loan repayment plus interest and fees, the remaining loan debt is written off and the Estate will not be liable for any further charges.

Taking out an Equity Release Plan is a major financial decision and it is important that you discuss your financial needs with a qualified professional to determine whether an Equity Release Plan is right for you. Andrew Douglas Wills and Legal Services offer a free initial consultation to discuss the amount of cash that could be available to you, as well as the advantages and disadvantages of Equity Release Plans. Therefore if you would like to talk through your options, call today for a no-obligation discussion and we will put you in touch with our trusted partner to talk you through Equity Release in Braintree.

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