Peace and happiness are the mental attributes but money has a role to play in ensuring a peace of mind for everybody. Without enough supply of money, it is hardly possible to enjoy comfort and improve our life style. The olds often suffer the problem of scanty money supply especially in the post retirement period. The ideal panacea to this problem is release equity program.
Equity release plan is mainly of two types : Lifetime mortgage and Home reversion plan. Lifetime mortgage refers to a policy of granting loan against a percentage of your property value. A certain volume of interest is charged by the lender. The loan along with the interest is extracted by the lender after the death of you or your partner. The main advantage of such type of release equity facility is that you are not required to make any monthly repayment.
The other option is known as home reversion plan. If you decide to choose this release equity option, you have to sell a part of your property and in exchange you will get a tax-free lump sum amount or regular income on monthly basis. You will still remain the primary owner of the property and have to bear all the expenses for the maintenance purposes at all times.
Repayment can be done either after the death of the individual or with the proceeds from the sale of the property. A part of the selling price, as per as the contract with the lender will have to be paid to him. The contract of such release equity option is made in such a way that the share of the lender gets equally increased in the event of rise in the property value since the date of agreement finalization.
Equity release plan is mainly of two types : Lifetime mortgage and Home reversion plan. Lifetime mortgage refers to a policy of granting loan against a percentage of your property value. A certain volume of interest is charged by the lender. The loan along with the interest is extracted by the lender after the death of you or your partner. The main advantage of such type of release equity facility is that you are not required to make any monthly repayment.
The other option is known as home reversion plan. If you decide to choose this release equity option, you have to sell a part of your property and in exchange you will get a tax-free lump sum amount or regular income on monthly basis. You will still remain the primary owner of the property and have to bear all the expenses for the maintenance purposes at all times.
Repayment can be done either after the death of the individual or with the proceeds from the sale of the property. A part of the selling price, as per as the contract with the lender will have to be paid to him. The contract of such release equity option is made in such a way that the share of the lender gets equally increased in the event of rise in the property value since the date of agreement finalization.
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