In Britain equity release is the term used to refer the process of reverse mortgage. This is useful for senior citizens as equity release allow them to stay in their home till death. In case someone goes into a nursing home permanently. Through equity release, the homeowner can cash the accumulated equity of the property and use the fund for any other purpose.elderly people can be benefited by the equity release or remortgage process. They get a lump sum amount in hand; this fund can be invested into annuity insurance or any other retirement plan. This way they can get a steady income as well. And most importantly, they can still live in the same house – no need to sell off and move to a new house in a new locality.
The benefits are as follows,
1:It opens up another source of income for you, and that is when you are not in a position to work. Moreover, the amount you get by releasing the equity of your home is tax free. How much money you can get from equity release depends on the value of the property, the amount of mortgage if any, and the present market scenario. You can appoint an evaluator or look for equity release calculator to know how much you can get by releasing the equity of your home.
2:If you need urgent cash and you take a loan, chances are you have to pay a huge installment every month to repay the loan. With equity release you can get a lump sum amount in hand without having to pay any monthly installment. It relieves you from a lot of worries and tension.
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