News Has Is That Home Reversion Plans Are History

Home reversion has seen a steady decline in popularity over the past 5 years despite the lifetime lease option. A home reversion plan is a form of equity release scheme whereby one exchanges part of their property for a lump sum of money or income. Comparing most of the features of this plan with features of other plans, this has proven a less attractive plan and most people will avoid it and instead go for the more flexible options which are the lifetime mortgage range of schemes.

With a home reversion plan, one becomes a co-owner of their property with the person they sell it to and therefore have limited enjoyment of the appreciation of the price of this property. In fact, one can never count on any profit in the escalation of property value on the portion they do not own anymore. This limited co-ownership is a major turn off for most potential equity release applicants as sharing the ownership of a home they own does not sit comfortably with most.

However, home reversion plans do have some advantages over their lifetime mortgage counterparts. One of these is the introduction of a lifetime lease which the home reversion provider will offer the applicant. This gives the right for the home reversion applicant to remain living in the property, no matter what, for the rest of their life.

Anyone named in the lifetime lease is able to remain in the property, as long as they are also named in the home reversion plan. It includes anyone who is 65 years or older living in the home, if named. The concept allows a married couple to stay in their home until the last surviving person has to move out or dies.

The older the person is the more amount of money that can be released. For example, a male person aged 70 years with a property value of £200,000 can receive up to £83,000 but in return must surrender up to 100% of the property. Younger people, who happen to be most of the ones seeking such plans for 7632132119, get far much less than what the elderly get. This thereby facilitates the drop in popularity of this plan.

The most important benefit of the home reversion plan can be the fact that ownership of the property not surrendered can be hereditary. This means that if one dies, his heirs can take up ownership under the same guidelines and specifications agreed upon by the deceased and the company offering the plan. However, with any surrendered part, if sold at a much higher price, one is not entitled to getting any share of the profit. In fact, in the long run, one gets much less the amount he could have received under other plans.

Another option that does not use lifetime lease options is lifetime mortgage schemes. These schemes are a mortgage often referred to as a reverse mortgage because repayment is not owed until the person dies or they decide to sell the home and move to a full time care location. The mortgage provides equity to the homeowner, so that they can live on the money.

The only option under lifetime mortgage schemes that require a monthly payment is the interest-only lifetime loan. You pay interest for the amount borrowed. At time of death or when the owner decides to sell the home, the principle loan amount is due.

There are definite advantages to keeping ownership of one’s house. It can be passed on to family members, without the need to sell or care what the loan company might need to do with it to get their money back. This type of scheme means the loan provider is happy as long as payment on the loan is made. The principle cannot change unless more money is withdrawn in equity. When the price increases, the home can be sold for that higher price ensuring an inheritance. Of course, the home price might devalue which could mean no inheritance.

Under most circumstances, the home reversion plan can work out far more expensive than a lifetime mortgage. The main difference is there is no worry about losing one’s right to stay in their home because of the lifetime lease. In this plan, if the interest rates were to go up, or house prices to considerably depreciate over the long term, the comparison then would be closer. Home reversion however still remains a less attractive plan, thus its significant drop in its market share.

What Are The 2014 Maximum Aviva Equity Release Calculations For The Aviva Lump Sum Max Plan?

It is easy to give a list of potential percentage of property value results for the maximum Aviva equity release calculations; however, to understand these results fully you need a bit more than the 2014 values. You need to understand how the loan to value percentage is gained. You should also know Aviva is just one company offering products to consumers in England.

Factors of the Calculation
Homeowners need to provide two pieces of information for the calculator to come out with results. The first is age. Age is going to determine the percentage of property value, while the second piece of information, property value, is going to give a result in currency for the amount that can be lent.

The age can be between 55 and 90 years for Aviva products. The younger a person is the lower the loan to value percentage is going to be; therefore, the lower the maximum lump sum is. The older a person is the more they will be able to release.

Why Age is a Factor
The premise of lifetime mortgage products like Aviva’s is to provide a loan without a repayment schedule. Instead, the loan is repaid after the person has died or moved into a long term care facility. When the home is no longer the main residence of the person the loan must be repaid. Before this time arrives, the homeowner is not going to make a payment towards the capital lump sum or the compounding interest. There are products such as the interest only lifetime mortgage, where the homeowner can pay the interest to stop it from accruing.

As the company is providing a loan without expected repayment and with compounding interest, the company has to make sure the total is not going to exceed the property value over time. A person of 65 years of age could have 35 years left to live in their current home. It would mean the loan is outstanding for that period of time without any payment being made. The company is looking for a return on investment, but they are also held to the Equity Release Council‘s ‘no negative equity guarantee’ which states the loan cannot exceed the property value and if it does the homeowner is not responsible for paying the difference.

For this reason the younger a person is the less they will receive. The older the person the more they receive on the assumption it will be returned much earlier than someone younger would be able to.

Current Aviva Age to Percentage of Property Value Figures
The following is a table of current Aviva percentage of property value figures based on age. It shows you the potential maximum percentage available to you for the lump sum plan in discussion here.

Age – Percentage of Property Value
55 – 20.5%
60 – 25.5%
65 – 30%
70 – 36%
80 – 47%
90 – 52%

Now that you have this information you can understand the maximum Aviva equity release calculations. For example, a home worth £200K for a person who is 65 at 30% percentage of property value would receive up to £60,000. A person who is 90 would get closer to half the property value, thus closer to £100k in maximum amount.

Independent Financial Advice
Once you have the calculation and determine if it will work for your needs, you can take on the next step. The main point is to ensure the product can release enough equity to do you any good. If you find the maximum amount is enough, it is best to speak with an independent financial adviser who is qualified to sell and talk about equity release products.

Using an independent source ensures you are getting the best product for you. This is not always possible by talking directly with Aviva or using the Aviva calculator. You may find after research that this is the best plan. However, you also want to make certain you are doing your research in full so that you won’t find out later you could have a product that is better in terms of interest rate or percentage.

The above are just the 2014 options for one product. The maximum Aviva equity release calculations are definitely skewed towards one product. While it helps you determine if Aviva is a product to look at, always make certain you have examined the market, as a whole, before signing any paperwork. You may find something better for your circumstances.

The Importance of an Equity Release Property Valuation

A Stonehaven equity release plan is a great way for people to obtain an additional source of capital in retirement. If you are considering applying for a Stonehaven Equity Release plan, one of the most important factors that will decide how much money you are eligible for is the property valuation. Property valuations are a standard part of the equity release application process. An 219-999-2210 can be of great assistance during the property valuation process.

Seek Independent Advice
It is also recommended to seek the advice of a qualified equity release adviser before the property valuation process. An equity release adviser will help you to obtain a good idea of the value of your property prior to application so that you have a good idea whether the amount you require is practical.

Property Valuation Options

• The internet is also a good resource to find realistic ideas of the current value of properties especially of properties that are similar to yours.
• Another good idea to consider during the property valuation process is to request a market appraisal from your local estate agent. These can usually be obtained free of charge.

Location Matters to Equity Release Lenders
Apart from the valuation figure, Stonehaven will also be interested in the location of the property. If your property is located on a large council estate, you might have some difficulties obtaining a Stonehaven equity release plan since Stonehaven do not like properties to be located on a large council estate. You might also experience difficulties if your property is located on areas that are designated as flood risk areas. Stonehaven does not accept properties that are located on flood risk areas either. Check the environment agency website for more details on flood areas.

Factoring Valuation at the End
Property valuation is not only important during the equity release application process but it is also important when the property is being sold. Normally, the property is sold at the end of the equity release plan which normally occurs when the borrower dies or has moved into a long term care home. The property is normally sold to repay Stonehaven Equity Release.

In most cases, the property would hopefully have increased in value. A final property valuation needs to be conducted to obtain the current value of the property for which it can be sold. This would be at the end of the equity release mortgage term, once death or long term care has been attained. Once the property is sold, Stonehaven is repaid and the remaining amount goes to the beneficiaries. In most cases, the beneficiaries would be the children or grandchildren of the borrower.

Focusing on Financial Product Benefits
For the most part the focus has been on valuations and what will happen if you decide equity release is right for you. There are other things you should consider before you hire a company to do an evaluation of your home particularly if you will need to pay fees for this valuation.

There are benefits to equity release:

• Tax free cash
• Having money during retirement to live on
• Going on holiday
• Helping out your kids
• No monthly payments necessary

You can use the money in any way you want which is great. It means you can have those holidays you always wanted. You can also enjoy a little improvement to your home. For many improving their home is the purpose of such a loan so they can increase the value of it for their children.

Disadvantages to be Wary Of
Depending on the amount of loan you take out you might threaten the inheritance left behind for your family. This is why adding to the value of your home is a good idea if you can afford it with the loan. If not there are ways to ensure you protect your children’s inheritance such as an inheritance clause in the agreement. It is always a good idea to get advice about the potential clauses that will reduce the negative effects of an equity release.

You also do not want to use this method if you truly want to leave the home in your family. If the home does not matter, you might also want to consider home reversion. Home reversion sells the home while you are still living in it. You retain a portion of the home and a lifetime tenancy agreement. In exchange you have funds to live on, but you do not have a mortgage payment you have to worry about in the end. This is another way to guarantee a money inheritance is left for your family members.

To receive an estimate of property value contact our team today on 0800 678 5159 and make certain to mention Stonehaven equity release is a product you are looking at so they know which company to send the estimate to.

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Typically, older equity release mortgages can leave you steeped in high interest charges that are simply eroding the family’s estate. While some people will continue stressing with their month to month equity release charges, others will opt to make a change in their lives for the better by considering remortgaging their equity release scheme. To swap equity release schemes can ensure a better deal for many older equity release clients.

Understanding Your Choices
If you find that you are wasting money and time, or someone you know is wasting their time with an old equity release mortgage plan, you may want to advise them to look to swapping equity release schemes for their own good. Performing the switch to a new lifetime mortgage plan can be easy and quick, but will also relieve plenty of stress that you are now in a better position to save the equity in your property . And the time for switching to a new equity release scheme has never been better with interest rates being lower than they have ever been. Therefore, it is the perfect time to make the equity release switch.

You may be wondering how exactly one can switch from their old plan to a new equity release scheme. The process is incredibly simple and should not take too much of your time. Have you never owned a mortgage? Did you never remortgage and transfer your debt to a new lender. Well that is exactly what switching equity release schemes is all about. Call it an equity release remortgage.

All that is required of the individual is to get in contact with an independent equity release consultant. They will review your information; take down your existing plan details in order to complete a switch plan analysis. This will give you a definite decision as to whether or not you should swap equity release schemes by comparing your old, to new plan. Ensuring that all set up costs are accounted for and any early repayment charges included within the calculation, the adviser can then roll out the news.

What benefits can come by switching equity release schemes?
One of the major benefits of switching lifetime mortgage plans is down to interest rates. Rates during the latter end of 2013 were the lowest that homeowners have seen in years; these incredibly lower rates you could save £1000′s over the long term. Another benefit of choosing this type of plan is the greater flexibility now available whereby you have the option of applying for drawdown equity release schemes with absolutely no problem. The last benefit is that the startup fees for modern day equity release plans are much lower due to the inclusion of special offers such as cash backs and free valuations.

Now, a year later interest rates are starting to edge back up slightly, but this does not take away from the benefit of swapping out your current equity release. Instead, now is still the time to ensure that you are able to change your mortgage for the better. Remember, these equity release interest rates are fixed for life, so if there is a chance, grab yourself one of the best equity release deals around which could very well be the (845) 579-6381 with rates currently as low as 5.68%. (5.88% representative APR).

There are some disadvantages to the situation too, which you need to be aware of.

Cons of Swapping your Equity Release Scheme
Like swapping any mortgage, you will have certain fees associated with the switch. You definitely need to speak with a representative of an equity release company to determine if switching to a lower interest rate is going to save you a great deal based on the fees. The good news is in most instances you will be able to save a great deal; however, not everyone is alike especially given the length of time you might have carried your equity release plan.

• Check with a lifetime mortgage adviser, who should be qualified & experienced in such matters of switching plans & possible even worked for these legacy companies.
• Overview your current case and the amount of interest that you have earned so far in the build-up of your compounding interest. A redemption statement would evidence this data
• Check to see what types of interest rates are currently on offer –usually equity release comparison websites can provide these rates & details for you
• Decide if your home value has increased or decreased. You can usually gauge valuation from websites such as Zoopla where recent sales may have been listed.

Along with interest rates becoming lower there are many areas in the United Kingdom that have suffered housing devaluation. You may currently sit in a negative equity situation, which could hinder your ability to swap mortgages. If you are lucky and your home has increased in value dropping the interest rate is a perfect opportunity to ensure inheritance for your family.

Always remember to speak with your family and consider your options. With interest-only lifetime mortgages on the market, you could swap out of your older plan and start paying a little interest to help save your family’s inheritance. Assess your situation and what saving your family home means to you before you begin to renegotiate on any mortgage plan. Also find out if you have a great deal versus newer deals, as there are cases that do.

Looking to swap equity release schemes should be undertaken on a regular review basis, particularly for some of the older equity release plans from yesteryear. There are many legacy plans from companies who have now withdrawn from the equity release marketplace. Providers that were once very popular such as Northern Rock (now Papilio Equity Release), In Retirement Services (Sold their mortgage book to Newcastle Building Society & Just Retirement, Aviva with their Index-Linked Equity Release Plan or the Norwich Union Capital Access Plan should all be reviewed. Also, not forgetting Mortgage Express who had a maximum release lifetime mortgage along with the Portman, Saffron and Godiva (Coventry Building Society).

There are so many legacy equity release plans out there, and too many to list completely, but they are all still contactable to ascertain the latest redemption statements for your adviser following the completion of a Letter of Authority.. So to enjoy lower startup costs, fixed interest rates and the availability of drawdown plans, now is the time to decide on whether to swap equity release schemes and reap the benefits!

The Benefits of Interest Only Lifetime Mortgage Calculators

For those considering equity release, you may have come across an interest only lifetime mortgage calculator. These are free online tools which offer to calculate the maximum lump sum you would be eligible for and what plans you would qualify for. Many people are reluctant to provide their personal information to these tools. However, there are a number of benefits associated with this readily available and easy to use tool.

The Benefits of an Interest Only Lifetime Mortgage Calculator:

• Quick qualification information: Equity release schemes such as lifetime mortgages have specific qualification criteria. This is slightly more complex than other forms of conventional financing. An interest only lifetime mortgage calculator can provide quick information about whether you meet the qualification criteria. This can save a great deal of time for those who would not yet qualify and allow them the opportunity to decide whether to postpone equity release or pursue other options. For example, many people are unaware that equity release lenders consider the age of the youngest applicant in joint applications. This would mean that a couple aged fifty eight and fifty four would be ineligible for equity release for at least another year.

• Highlights the implications of interest rates: An interest only lifetime mortgage calculator can be an excellent way to highlight the implications of different interest rates and specific plans. You will be able to see the long term costs involved in committing to a lifetime mortgage plan in order to make an informed choice about proceeding forward.

• Compare plans: Many of the more in-depth forms of calculator allow home owners to compare different plans and products. This can allow the home owner more control and information to make informed choices. By exploring the implications of different plans and products you can explore whether it would be more beneficial to opt for a plan offering a slightly amount of release or one which offers a more attractive interest rate. While many people are interested in obtaining the maximum amount of release possible, an interest rate of even one per cent lower can significantly reduce the overall long term cost, which may make it a more attractive deal.

How to Make the Best Use of an Interest Only Lifetime Mortgage Calculator

Interest only lifetime mortgage calculator tools provide an extremely useful research resource. However, there are a number of guidelines to make the best use of these free tools:

• Use more than one calculator: An interest only lifetime mortgage calculator is restricted to being linked to the specific product range of the company or broker. This may not represent the best possible deal for your circumstances. In order to obtain a better insight into the marketplace, it is best to use more than one calculator. Ideally, you should also incorporate using a general equity release calculator into your research to double check that a lifetime mortgage would be the best type of equity release for you.

• Double check your information: Calculator tools are purely mathematical. They have no capacity to check the validity of your information. Therefore, there is a responsibility for you to double check your information. You should spend a little time researching property valuations in your area to ensure that the figure you enter for your property value is as accurate as possible. Additionally, request an up to date balance from your current mortgage provider. Both these factors will affect the amount of equity in the property and inaccurate information will compromise the reliability of the results from the calculator.

• Plan out how much you actually need first: Many people begin their equity release research by looking for the amount of release sum which would be available to them. However, it can be a good idea to calculate how much you actually need before you begin. This will give you an indication of whether a particular scheme would be sufficient for your needs right away before wasting any more time researching. You may be pleasantly surprised by the amount of equity release available to you, which would give you more options on your flexibility which could provide a better deal.

If you are considering equity release, an interest only lifetime mortgage calculator can be a good starting point. However, it is important to realise that it should not replace professional advice. The calculator can provide the information you may need to make an informed choice about whether you would like to apply, but a professional adviser will be able to assist you in assessing the specific benefits and limitations of your chosen plan.

Are We Likely To Ever See Prudential Equity Release Plans Again?

In order to answer the question as to whether we will see Prudential equity release plans again we need to consider why equity release plans emerged in the first place and what they have to offer. Equity release allows you to raise funds from the value of your property. You and your spouse or partner retain the right to live at the property until you pass away or move out.

Essentially what you are doing is selling your home and then moving out later. For the retired over 55 individual or couple this can be a wonderful way to raise funds when they are needed. There are many reasons to choose equity release. The most obvious is that your retirement plan simply has not lasted as long as you thought or hoped it would. With the cost of living at an all-time high this is very common.

But, of course, you could just want to make your retirement a bit more relaxed. Or, perhaps you have always wanted to take an overseas trip and you have decided that this is the time.

Not all equity release schemes have been taken off of the market. In fact you have at least three companies that are major equity release providers. When you lose one provider there are often two more coming along the way or at least two more products to make it on the market. Whether Prudential equity release plans appear again or not, you are not being left out in the cold for your retirement needs. Instead, you have plenty of choices that have replaced the one product that is gone from the market right now. Let’s take a look at those options versus dwelling on the loss of one particular company’s product.

Lifetime Mortgages for Retirees

Under the name lifetime mortgages you have four products on the market right now. These are:
• Drawdown
• Roll-up
• Interest Only
• Enhanced

To start, rollup is the mainstream equity release. It is the one which all other lifetime mortgages are designed around. They are made for the person unable to make a monthly payment on the loan and who desires a large lump sum of cash to live out their retirement. You will see interest accrue onto the principle lump sum you took out. This lump sum and the interest are paid back once you die or decide to move out of the house the product is covering. Typically, payment is made with the sale of the home as most retirees do not have enough cash to cover the amount without a sale. You must be 55 years of age to take out one of these rollup products or any lifetime mortgage.

Drawdown is a definite change to rollup because you receive a smaller lump sum initially and then you take out money as you need it. Interest only adds up on the funds you have withdrawn from the account. This saves you money in the long run.

Enhanced is a version of the rollup scheme in every aspect, except it is a specialised mortgage to offer more money in a lump sum. You receive even more than the rollup plan or drawdown mortgage because your life expectancy is compromised. It might sound cold to say that illness in which death is quicker than most retirees is an advantage. However, in this case it is your ill health that can get you more funds because the loan is expected to be repaid quicker.

Interest only works like a rollup mortgage except you pay a monthly interest amount for as long as the loan is unpaid. Some products allow you to choose the amount of interest and make it a hybrid with a roll up in which any unpaid interest is rolled up into the lifetime mortgage. Most expect you to pay the full interest as it accrues each year.

If you do not appreciate these equity release plans in your situation, then consider a different choice in home reversion. This is an absolute sale of your house, but at least you get funds without a mortgage and interest accruing. For some this is a better option than having the burden of debt when they pass away.

Whatever scenario applies to you, you can see that the need for equity release plans is only going to increase. With this in mind it does seem likely that we will see equity release plans again in the form of Prudential equity release or at least from another company with products just as great.

Important Factors To Consider Before Choosing an Equity Release Plan

Many retirees turn to equity release plans as an easier way to raise more cash to fund their retirement years. You can speak directly to an expert prior to making a firm decision, since these plans are not always the most suitable for everyone. Here are some critical points that you can consider prior to making any decision and questions that you should ask your lifetime mortgage adviser.

Discuss the alternative ways of raising the money
An equity scheme will reduce the property’s value, with a few exceptions; hence, if you are not comfortable with this then the plan may not be the best idea for you. You may consider downsizing to a smaller property; however, many people do not like moving out of the home that they are used to, and the one they have brought up children in, for the sake of downsizing.

The reason it reduces the value is that you are taking equity out of the home and will have more to pay back in the end. It may be more than your children can pay and more than is covered by any life insurance policy. It could end up in an eventual sale of the house anyway.

Selling off items that you no longer wish to keep is one way to raise some money. It might not be a lot or enough, but it is a good place to start. For instance, do you need two cars anymore now that you and your spouse/partner are retired? Do you have other property like a second home you could sell or is it smaller so you could move there instead? Do your children wish to move back home to help out? Perhaps they have a little cash they can help fund your retirement with?

Always think of the alternatives before going with equity release.

Do you have potential state benefits?
Depending on your current circumstances, you may be a qualifier for additional state help, meaning that there is no need for you to withdraw funds from your home. As you compare the different equity release schemes in the market, the adviser will bring out some of these questions and help you make a wiser decision. The last thing you want is to lose income elsewhere.

Benefits can run out, so if you can take advantage of them now you might wish to do so. On the other hand you may find that owning a home keeps you from gaining extra benefits. If this is the case you may wish to use the equity in your home until you can no longer do so. At this point you can sell your home, pay the loan back, and then gain those additional state benefits. It just depends on what is available to you and why it might be an option.

Will you qualify for equity release?
You need to understand that not all people who own a property will qualify for an equity release mortgage, hence do the comparison research and confirm that you do qualify. For one, you must be aged 55 – 95 years and own a home worth at least £70,000 or more depending on the provider. There is a further criterion each company uses hence you must always check eligibility before submitting an application, as you do not want to be wasting hard earned money on a valuation fee.

You should be aware that the above are standards. They may not apply to each company. Some companies may stop giving out lifetime mortgages when you reach 75 meaning you need to attain it before this cut off age. Other companies may be willing to offer someone 99 years of age a helpful retirement plan. Compare the age, health options, and the value needed in your home to find a solution.

Are there equity plans that fit your needs?
There are various plans that you can explore and are provided by FCA (formerly SHIP) registered companies such as Stonehaven, Just Retirement and Aviva. Such companies have access to an equity release calculator to determine how much you can release from your home. Interest rates vary depending on the lender concerned and with some companies it can be affected by age. The property value is the key determinant as to how much as a percentage of its value you can get.

If you do not understand how equity release works, you need to first research the subject which can be undertaken online and requesting a free guide to equity release. However, if you are fully aware of what equity release entails, then go ahead and find your local equity release adviser and submit an application to enable you to enjoy your retirement lifestyle.

The Versatility of Modern Day Equity Release Schemes

The process of releasing money or equity out of a primary residence without moving out is called ‘equity release’. Seniors who desire to free up money for different purposes choose this method as it allows them to have money in their pocket which they can use for different purposes. If you are living in the UK, you can arrange to get equity release as early as when you hit 55 years, but there are also limitations since you can only release so much at that age. Ideally, the older you are the greater the lump sum you get from equity release loans.

The main reason why people choose equity release loans is to raise money, which in turn will help improve their standard of living. The reasons could be for a multitude of different purposes, ranging from home improvements, helping the kids, holidays or even having an emergency fund in the bank.

In the past, people used to release equity to enhance their pension, go on holidays, and make their retirement years much more pleasurable. If you have a major project that requires cash in a lump sum, this will be a great idea; for instance, buying a second home in the UK or abroad, or to simply enhance your retirement package.

Other people take up equity release loans for real life situations that need accomplishing. For example, there are those who take up the lump sum to pay off a mortgage and consequently increase their monthly income, while a long waiting list for a hip replacement or other similar surgery may prompt one to take up equity release.

You might also choose to use the money to help family members buy their first home, do your own home improvements, or replace a family car. You can also choose to invest the money in property abroad which then allows you to travel away and have time with your children, especially if they are not living close to you. You might also consider buying a motor home and having fun travelling all over. The principle of equity release is to have money and spend it on what you want.

When people choose this option of raising funds, usually they do not have any other options left, or the other options are too expensive or inconvenient. In its infancy, people tended to use equity release for lifestyle reasons which effectively were optional and not a necessity. However, more and more seniors today are using the equity release facility to enhance their pension, or to fund their long-term care or help their children in financial crisis or for business purposes. These new era requirements have become more of a ‘need’ rather than a ‘want’ in the current economic climate.

Given this era of need you will definitely want to compare the different plans that exist. You may find that there is one solution that best fits your requirements. You may be older than 55 and wish to have more money released than a person would get at this age. Perhaps you have a health issue? If there is something attacking your longevity, there is a solution.

You can take out an enhanced lifetime mortgage. You receive a larger lump sum than you typically get. You also have the funds to make your life as comfortable as possible. If you are not taking out a loan to help pay for your expenses or help your children out, consider an interest only lifetime mortgage.

An interest only lifetime mortgage is designed to make taking out equity cost effective. You pay the interest that accrues each month on the loan. You do not pay the balance like any other option; however, you also do not add more to your principle balance. This keeps it at a reasonable level and an inheritance for your family.

Once you reach 65 you have an alternative to equity release loans in the form of home reversion. This option ensures you do not owe any more debt now that you are in retirement, but you do have cash to spend. You just have to sell your home, not always something most retirees are comfortable with, but still it is a choice.

Before one embarks on an equity release plan, it is important that they involve an independent financial adviser who can guide them on the best equity release method depending on their own unique circumstances. Generally, people aged above 55 and who own a property can use equity release loans, and the amount of money released will largely depend on their age and their health condition.