The equity release is a very profitable solution for the elderly who own a property. Be it a residential or commercial property, the equity release option works well for all of them. By using the equity release option, you can get regular income. The equity release can be fetched from banks, financial institutions and other similar agencies which deal in providing financial aid.
What is equity release?
As discussed, the equity release is a great option for individuals who would like to use some cash in lieu of their pre-existing property without selling it completely. Everyone who owns a property, however, is not eligible for the equity release option. There are only a certain group of people and the individuals who are eligible for the equity release option are:
● The equity release option can be availed by individuals above 55 years of age.
● There is a minimum size of property that has to be owned by the individual wholly for mortgaging it.
● The local mortgaging orders are applicable for the said property.
Advantages of equity release
You get to Retain your Home –With the requirement of cash, you often look forward to selling your assets. Having a lavish home is also an asset as you can always sell it to obtain liquid cash which is required for your expenses. The individuals who are in such a situation do plan to move to a smaller dwelling which is also called downsizing. The downsizing is a good option however, in this bargain you will have to let go off your emotional and sentimental feelings attached with your home. The equity release option will not let you be devoid of your sentiments attached from your home as you can stay in the same home. Therefore, by staying in the same home you will be able to get cash by releasing a part of your residence.
Maintain Status and Reputation
The dream house that you had built with your precious savings is a part of your reputation in the society. If you downsize your house when you face a financial crunch would mean that your status would be at stake. You can avoid it by using the equity release option.
The equity release option means that you are free from paying any inheritance tax, the money that you receive by this deal will be worth a lot of value, thus you can use it for numerous purposes. So, avoid paying and enjoy spending. So, it’s all what we think you want to know about what is equity release.