Many aging individuals who have recently retired and need a bit of extra help financially for themselves or others in their family should seriously consider home equity release schemes. Equity release provides a means for homeowners aged over 55 years old to raise cash from their property. Dealing with this type of financial scheme is something that one should take seriously, and requires a great deal of understanding of how the schemes work and what is available to you. If you are an aging citizen looking for cash in Somerset, South West England, then it is wise to enlist the services of companies that deal with equity release in Somerset.useful reference
There are two main types of equity release in Somerset – lifetime mortgages and reversion schemes. Lifetime mortgages work in a similar manner as how it would be if you had remortgaged your house normally. However instead of making monthly repayments, the interest charged rolls onto the sum borrowed and is repaid with any cash withdrawn from the mortgage when the property is sold after the owner’s death. There is also an opportunity for some schemes to pay the interest in an ongoing basis, rather than let it roll up. A variation of lifetime mortgages is the drawdown scheme, which allows the homeowner to take cash from their home in instalments, rather than in a lump sum, which is beneficial in controlling the level of interest charged. This scheme is becoming increasingly popular in today’s property market. The second type of equity release in Somerset is known as reversion schemes. This requires the homeowner to sell a proportion of their home to the ‘reversion’ company in return for a sum of cash.
Equity release is a great way of making some money out of your assets in your prime age, but it is essential that you gain the right advice and ensure you know all the benefits and disadvantages of the scheme before you make any decisions. The options that equity release present can be very helpful to those who need some extra money and can also be helpful in their timeliness. When selecting equity release in Somerset, it is wise to choose the services of a financial advisory company that is well experienced and has been in the market for a long time. A good advisor will be able to walk you through all the types of different schemes and come up with the best possible solution for your particular requirements.