Need info about equity release?

Equity release is a means of retaining use of your house or other object which has capital value. You can obtain a fixed income and you will have to re-pay the income-provider when you die. It is particularly useful for senior citizens who don't want to leave a large estate for their heirs.

The loan is secured on the borrower's home (a mortgage) and made to generate an income. Interest payments are added to the capital throughout the term of the loan, which is then repaid by selling the property when the borrower dies.

The borrower retains legal title to the home while living in it and also responsibilities and costs of ownership. The older the client the smaller the share required by the lender.

First advantage is that it can reduce the amount of inheritance tax paid by your estate. Secondly, if interest rates fall, borrowers are free to refinance their mortgages at a lower cost with other providers. Regarding disadvantages, it may decrease the amount of money your family will inherit upon your death and it may reduce the amount that you can bequeath to charity.

The value of your home minus any outstanding mortgage can be described as your 'equity'. It allows you to release this cash from your home, which you can then spend on whatever you like. How much cash you can release depends on how old you are, how much your home is worth and if there are any outstanding loans on the property.
Equity release can provide you with financial freedom, but it's not always the right decision for everyone. That's why you should look for a free consultations on the net with a personal equity release adviser. They will assess your situation and tell you whether an equity release plan would be the most suitable option for your needs or not.
Hope you'll find the most suitable solution for you as I did!