Equity release is a fantastic option for many homeowners when used correctly. By viewing different equity release plans, you can find the right plan, taking advantage of the benefits of equity release. Read on for some of the biggest benefits of releasing equity.
Essex Equity Release offer advice regarding all equity release plans. We can also make a recommendation so you have a good understanding of the best plan for your specifications.
Paying Off Existing Debts
As you get older, you want to make sure that any existing debts you have from earlier in life are dealt with and fully paid off. Therefore, you can enjoy the latter stages of life without worrying about repayments.
By taking out an equity release plan, you will receive a lump sum of money. Whether the debts you currently have are small or little, you can use this lump sum however you like. You could be left with a lot of money once debts are paid off or only a small fund. Either way, this can get a massive financial burden off your chest, completely clearing debts.
Live In Your Home Rent Free
Despite receiving money for part of your property’s value, you will never have to move out. This means you can live in your home rent-free until you and your partner pass away or move into long-term care. With money still available from the equity release plan, this can give you a very comfortable living situation.
The more common alternatives to equity release is to sell your home and downsize, get a loan or decide to rent for the rest of your life and sell your home. Equity offers a much more suitable options and means you can stay in a home that you love without monthly payments.
Benefits of equity release also include all money being completely tax-free. Regardless of how much money you would like to receive in your plan, you will not be taxed for any of this. This makes it a great option to receive the highest amount of money possible, as long as the plan is suitable for your specifications.
No Negative Equity Guarantee
No negative equity guarantee is offered by all equity release schemes approved by the Equity Release Council. This means, when you sell your home, the amount of money you owe to your provider will never be more than the value you sell your property for.
Even if your outstanding debt is more than what the property is sold for, you will not have to repay it. This ensures that homeowners who release equity will never be left in debt. Additionally, no debt can be passed onto children and other family members.
Spend The Money How You Like
Once equity has been released, that money is yours to spend how you like. There are absolutely no restrictions on what you can do with it. Whether you want to help out family members, travel a bit more or just live with financial freedom, the choice is completely up to you.
This means you can live a lot more leisurely if you desire. Meanwhile, also having the option of how you would like to make repayments. This gives you a lot more financial stability and power so you no longer have to worry about money.
For more information regarding the benefits of equity release and whether it is the right option for you, book an appointment with Essex Equity Release today. You will receive a fast response from our team. We will organise a chat at your home, our office, via email or over the phone. Call us on 01268 799211 or fill in our contact form to make an enquiry.