Generating income in retirement is normally a major concern for many retirees. Your savings and investments may not be working as hard as they should to guarantee you a steady flow of income during your retirement. So, what do you do? You are no longer employed so you are not generating steady income from employment. Should you look for a part-time job? Are you physically able to take up a part time job? What about the state benefits that you are entitled to? Are you getting all of them? If you are not, how much of your precious time do you want to spend fighting the government to make sure that you are getting the benefits that you are entitled to?
What about your home? Can you afford to maintain your property? Can you afford to make the required improvements to your home needed to sustain your changing physical condition? Would you eventually need to downsize on your home because you are no longer able to maintain it? Do you really want to spend your retirement worrying about all of the above or do you want to spend it relaxing with your partner, traveling the world and spending time with your loved ones?
Well, if you are 55 years or older and own your home, you can have the retirement of your dreams because you would be eligible for equity release. For those of you who are not familiar with equity release, it is a way of releasing the money that is in your home. If you were to sell your home today, you would receive a lump sum amount that you could use to have a splendid retirement buying what you want and going where you want to go but where would you live? With an equity release scheme, you could either choose for a lump sum amount or a monthly income which you can use to do whatever you want to while remaining in your current home.
Equity release providers can either grant you a loan against your home or they can buy all or a part of your home. The money that you will get can either be in the form of monthly payments or a lump-sum payment. Not only is this amount tax-free but it can also be used for any purpose including:
What’s the catch? Well, if you choose for a loan (lifetime mortgage), you will need to pay interest on the amount you borrow but you do not have to make any repayments. When you die or move into residential care, your home will be sold to repay the loan and interest payments. If you choose to sell all or a part of your home (home reversion), you will be selling it at a price lower than its market value.
An equity release calculator is an online tool that is available on almost all websites that offer equity release plans. It is a tool that is used to instantly make an estimation of the amount of cash that can be released from your home based on your age and the value of your home. Other factors that influence the equity release calculator include: whether or not you are applying for equity release with or without your spouse and whether or not you want to leave an inheritance behind for your loved ones. If you are applying with your spouse the age of the youngest spouse is what will be required by the calculator to make a more exact calculation.
With an equity release calculator you can estimate your future balance. This will allow you to know in advance if you will have anything remaining to leave behind as an inheritance. Another factor that will affect the equity release calculator is whether or not you have any outstanding balance. If you have any outstanding mortgage balance, it will affect the amount that you are allowed to release from your property because that balance will decrease the current value of your property.
If you are considering equity release as an option for a steady source of income during your retirement so you can have the retirement of your dreams, go online and find an equity release calculator so you can determine how much money you can release from your property. This will allow you to make a better planning of what you can and cannot do during your retirement and will ensure that you have a peaceful and stress free retirement.
Need cash? Have a home? We can help you take out equity at the best rates!