There comes a time when eventually will need to use some of the equity that has built up in your home to help with some of your living expenses. Most equity release schemes are geared towards the elderly since they have more equity that has built up over the years. An elderly couple can obtain cash from their home in the form of an equity release plan.
An elderly couple can find out how to release equity from their property by contacting an independent equity release adviser. The independent equity release adviser will discuss with the elderly couple their options. Two of the options that the independent equity release adviser will tell the couple about are lifetime mortgage and home reversion plans.
With a lifetime mortgage plan, the elderly couple can receive a tax-free cash lump sum and still remain in their home. The couple will not have to make any monthly payments on the loan while they are living in it. The interest that has accumulated while you are living in the home will be paid in full once you pass away or move into long term care.
With a home reversion, the elderly couple can sell all or half of there property. By selling just half of it, it allows the couple to gift the other half to their beneficiaries when they pass away. Just like a lifetime mortgage, the couple will not have to make any monthly payments and can remain in the home until they pass away or go into a nursing care facility.
With both plans, it allows the elderly couple a capital sum or have a steady flow of income for the rest of their lives. With a home reversion, you can usually obtain a greater lump sum than you would receive if you were getting a lifetime mortgage.
An elderly couple who are over 55 are eligible to qualify for a lifetime mortgage, however for a home reversion you need to be 65 & own your main residence with no or little mortgage.
