Return to site

Understanding more on Equity Release

· mortgage
broken image

Ravenwood equity release basically refers to the wide range of products that allow you to access the equity or in other words cash that you have tied up in your home and mostly applies for those who have advanced in age, over 55 precisely. The amount of equity so released can be taken in a lump sum or alternatively in smaller bits. Better still you can have it as a combination of both.

There are two basic options when it comes to equity release. These are the Lifetime Mortgage option and the Home Reversion Plan. Under the Lifetime Mortgage plan, you will be allowed to take out a mortgage secured on your property. This is only attached to the condition that the particular property upon which the mortgage will be tied as collateral is your main residence. This is so beneficial in the sense that as you do this, you will retain your ownership to the property.

Over and above this, you have the option of retaining some value of your property so as to have this as an inheritance for your loved ones. With this, the Lifetime Mortgage plan, you will as well be having the alternative to do your repayments or just have the interest compound. The particular amount that you will have been advanced as part of the plan plus the interest so accrued will be paid back after you die or when you get to move to long-term care.

On the other hand, home reversion is where you get to sell all or part of your home to a home reversion provider and in turn get advanced a lump sum or alternatively regular disbursements. In this, you have the right to choose continue residing in the home until you die or are moved to long term care, all rent free. The only condition attached to it is that you have to agree to continue maintaining it and as well insure it as well. It as well has the benefit in the fact that you can choose to retain a share of the property value and this can be quite useful for your future needs such as for the sake of bequeathing to your dependants. You can find more tips and guide here in this link - www.ravenwoodservices.co.uk/equity-release/

Note the fact that with them, the percentage share that you will choose to retain will remain the same value irrespective of the changes that may be in the value of the property over time, unless you choose to take some other cash releases. Finally at the end of the plan, the property will be sold out and the proceeds from the sale will be shared amongst the parties as per the provisions in the agreement, pro rata.