For senior citizens over age 55 who are planning to leave a large estate, there are new lifetime mortgage schemes that provide inheritance protection features which can now provide peace of mind like never before. For many people considering a lifetime mortgage, the main barrier to overcome is the fact that the balance on these plans increases over time. There has been much scaremongering over the years and unfair comments made about the equity release industry from the national press. Some of this has been deserved with regards to the equity release schemes back in the 1990s, but these tended to be the banks with the much-maligned Shared Appreciation Mortgages.
Nowadays the equity release industry is highly regulated & quite rightly so. Following the introduction of SHIP in the early 1990’s a set of standards now exists which has now formed a code of conduct that both equity release companies and advisers must follow. Failure to do so could result in their equity release license being revoked.
Additionally, the research techniques of the baby boomer generation has changed. Where once the internet was considered the arena of the young & aspiring, the silver surfer generation has been born and you will now find many retirees booking their holidays and order their shopping online. This has led to the new equity release brokerages developing online advisory techniques to be able to present in a simple & clear manner what equity release is & the best deals available. One such product which has become an increasing favourite is where This new breed of are being used to enhance the maximum lump sum available. These equity release schemes are proving particularly salient to the risk-averse of the retired population who at the same time want an affordable and efficient tax-free access to their capital. In addition, these plans can now be sourced, evaluated compared and even managed from the comfort of your own home, thanks to advances in the world of online shopping.
An equity release programme allows senior citizens to borrow money against any large asset, such as a house. This capital is available in a lump sum, or it can be released more gradually so that it forms a monthly income.
Unlike ordinary loans, however, equity release plans need only be paid back, usually, after death. This allows people to retain the use of their home, or other assets, for the whole of their lives, and with a number of repayment plans available, it should be possible to repay the interest on the loan during that time.
While the benefits of this kind of loan are obvious and significant, there are disadvantages as well. While the payout from an equity release loan is tax-free, interest continues to accumulate which means that by the time the heirs of property and assets see their inheritance, the chances are that it will have been thoroughly absorbed into loan repayments.
In short, equity release is now significantly easier to secure than it was in the past. Those keen to discover more need only log onto the internet. However, the disadvantages of this kind of loan make it an option not well suited to everyone.
For advice & a free calculation to ascertain how much could be potentially released call today.
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