What is Equity?
Equity is the value of your house after subtracting the outstanding mortgage loans against you.
What is Equity Release?
Suppose you are in mid fifties and are on the verge of retirement. You have bought a home on mortgage and built up some equity after paying off substantial amount of your loan. You want to make for your future financial security and want to utilize this equity amount to generate a new stream of income. You need some money to make improvements in your home, so you can rent out a part of it. One way may be to sell a part of your home equal to the value of your equity to raise the required amount . The other way is to borrow money against the equity while continuing to live in that home. This is called equity release that is, getting cash from the value of your home. You may get the cash in one lump sum amount or in instalments. Whether or not you qualify for the release of your equity depends upon the amount of mortgage amount you have paid.
Benefits of Equity Release
It must be noted that the equity release plans permit you to raise tax-free cash from your home to secure your future post retirement or in old age. There are four major types of equity release plans with scores of variations upon them:
1. Lifetime mortgage.
2. Home Reversion plans.
3. Drawdown plans
4. Home Income Plans
Go for Authorized Agencies
You have to do your homework thoroughly to select a plan that suits your objectives. But before you settle for any one, check that the loaning agency is duly approved by the Financial Services Authority (FSA) set up by the Government of UK. This authority is responsible for regulating a range of financial services or products including the equity release plans. The authority has launched SHIP—Safe Home Income Plan to promote efficient, disciplined and fair market to ensure fair deal and protection to the consumers. Though most of these plans are approved by the SHIP, there may be some unapproved plans as well.
All the SHIP authorized equity release plans ensure a set of standard guarantees for the consumers which include:
- The right to stay in your house for as long as you like.
- The freedom to shift to another house without attracting any penalty subject to the criteria laid by the lenders
- The right to opt for lump sum amount or regular income
- The consumer will never fall into negative equity whatever the market conditions in the housing busines
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- We will give you a guaranteed offer to buy on your property within 48 hours of viewing your home. Unlike residential buyers we won't change our mind once we've made an offer.
- We can complete the purchasing process on your home in just days.
- We will save you time wasted on estate agents, valuations, surveys, viewings, the standard home buying legal process and lost opportunities caused by problems in a chain.
To find out more about what Sell Up Fast can do for you, call us free today on 0800 321 3521 or Apply Now Online..Click Here and get ready to sell your house fast
