What are equity release schemes and what is the equity in your property? The equity in a property is the difference between the current open market value of your property and any loans and mortgage outstanding on it. So for example, if you have a property that is worth £100,000 and an outstanding mortgage of £40,000, the total equity available in your property would be £60,000. As another example, if your house is worth £150,000 without any outstanding mortgage then the total equity in the house is £150,000.

Equity release schemes help you access part of the value of the equity in a property. If you are looking for an equity release scheme that helps you “unlock” the equity in your house then we can help. We specialise in helping people convert their equity into cash. That means either getting you a regular income or a lump sum cash for the equity that is in your house.

You can stay in your home after releasing equity

Many people believe that equity release means that you have to leave your home. In fact research by Safe Home Income Plans (SHIP) shows that around 70% of people think that they have to leave their house after releasing equity. However, the truth is that you can stay in your house until the end of your life as long as that home remains as your primary residence.

You have the option to live somewhere else after equity release

Another common misconception is that it is not possible to relocate after releasing equity. As many as 50% of people surveyed by SHIP assumed that equity release means that you have to remain in the same house. However, your equity release plan can be transferred to another suitable property.

Your children will not end up with debt

As many as 40% of us are concerned that releasing equity will mean that our children will pay off your debt after you die. However, this is untrue because the amount of equity that you release is never more than the value of your home. Your children will not be burdened with any debt since the resale of your home will clear the outstanding debt.

Equity release is safe

Despite some of us worrying about the safety of equity release schemes, as long as you select a company that is a member of SHIP, you can be assured that you are protected under FSA regulation.

You can still leave an inheritance after equity release

As many as 67% of us think that once we release equity from our properties, our family members will not be left with an inheritance. Although equity release reduces your estate value, when you die or move into permanent care, the proceeds from the sale of your property will not only clear your loan but any remainder will be handed out to beneficiaries.

You can use the cash from equity release for any purpose

The cash that is released from your house using an equity release scheme can be used for any purpose. Many people release equity from their homes to use the cash for personal reasons. There are no restrictions on where you can spend the money from equity release. Whether you are looking to renovate your home, looking for extra cash for an improved living standard, looking to pay off debt, releasing equity for your family or looking for extra money for investing you can use the money for any purpose.

Equity Release is Tax Free

Any cash released from an equity release scheme is tax free. However, it must be noted that any extra income earned as a result of investing the cash may be taxable.

The equity in your home can be accessed either as income or cash. Equity release schemes should not be confused with sell and rent back schemes that are offered on the market. Equity release schemes are quite different to sale and rent back schemes.

If you have sufficient equity locked in your house then click here for some free and independent advice. We will review your application with you and help you realise the best equity release scheme for your financial circumstances.

Contact Us for a free call back to speak to a qualified and experienced equity release expert to get your application under way. We can process your application quickly and help you obtain cash or income within days. Call us to get started now and get paid the cash that you want for the finer things in life

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