Taking out an equity release scheme is a big decision because it can affect numerous things like benefits and the amount of inheritance left behind. However, if after careful discussion and plenty of thought, it is deemed to be the best option there are many benefits to an equity release scheme.
An Additional Source of Income
The obvious and most vital benefit of an Age Partnership equity release scheme is the opportunity to release a tax-free lump sum from the value of your home. How much you can release will be dependent upon your circumstances and the value of the property.
Whatever amount of money it is that is released, it can be used on a variety of things. Some of the popular reasons for releasing equity include clearing debt, paying off the mortgage, helping out the family and maintaining a certain lifestyle.
With such difficult economic times affecting all of us, having the option to access a lump sum is very appealing.
No Monthly Repayments
Having access to such a lump sum of money, without having to worry about repayments, is a great benefit of some equity release schemes. It reduces the worry of having to make sure payments are made.
If opting for a lifetime mortgage where no repayments are required, the initial loan and any accrued interest will be repaid when the homeowner either passes away or goes into long term care.
Continue Living in Your Home
When you take out an equity release scheme you don’t have to worry about relocating as you can continue to live in your home. This gives you the freedom to maintain your current lifestyle.
Some Things to Be Aware Of
As mentioned earlier in the piece there are a few things to take into consideration when thinking about an equity release scheme. It will affect the inheritance you leave behind so it is advisable to discuss this with your family. Furthermore, it can affect benefits so make sure you check with the relevant agencies as to whether any benefits you may be in receipt of will be affected.
Finally, by consolidating your existing unsecured debts, you may extend the term and overall cost of these debts.
