After spending many years in the workforce, carefully nurturing a family, and finally saving up enough money for an enjoyable retirement, our senior citizens deserve to sail off into the sunset and enjoy their golden years. However, after taking into account the cost of retirement in this day and age, which happens to be upwards of 50,000 pounds per year, many retirees shudder at the notion of running out of money during the late stages of life. From entertainment and travel to the necessities of medicine, physical therapy, and remedial treatments, the concept of a tranquil, easy-going retirement plan has been replaced with exorbitant budgetary concerns and a general fear of the unknown.
Fortunately, as our modern financial landscape features steady lending rates, thriving stock markets, and perpetually rising housing values, people no longer have to worry about financial ruin as they near retirement. With the invention of lucrative equity release programmes, homeowners now have the ability to pull wealth from their property’s inherent value in a safe and secure way.
The Benefits of Equity Release
With today’s modern form of flexible equity release plans, which are also referred to as lifetime mortgages, folks can now turn home equity into tax-free cash without having to downsize or alter their lifestyle. Since equity release schemes for over 50s are becoming quite popular in this day and age, it’s worth pointing out the benefits of this type of financial decision:
- Tax-Free Income – An equity release programme encourages retirees to live comfortably and independently since it provides a tax-free lump sum or monthly tax-free income disbursements. Best of all, programme participants retain homeownership indefinitely.
- No Monthly Payments – The most reputable lenders in this industry feature equity release programmes that require absolutely no monthly payments towards the charged interest, which ensures your monthly budget will never get thrown off kilter.
- Remain in the Home – According to a recent study, more than 80% of people over age 50 wish to stay at home for as long as possible, and many of them display an outward aversion towards the concept of retirement homes or assisted living. Such an outlook is understandable since they have likely lived in their home for many memorable years, established countless community friendships, and passively attained a level of comfort in their neighbourhood. Therefore, home equity release programmes allow people to permanently stay in their homes rent-free.
- Highly Regulated – Due to the scandalous home income plans that were distributed during the late-80s, thousands of elderly people were left to toil away under inordinate mountains of rising debt. This is no longer the case, however, as municipal and governmental agencies have made a point of not only paying back all affected individuals, but also carefully regulating the modern landscape to ensure honest, forthcoming practices across the board.
- No Negative Equity – Due to the above-mentioned onus on regulating the lending markets, a key feature of modern equity release schemes is the elimination of net-negative home equity. Simply stated, reputable lenders provide the assurance you will never end up owing more than the quantifiable value of the home.
Finding the Best Lender
Regardless of your current monthly bills, retirement strategies, or present-day living situation, being able to access the lucrative value within your home is priceless in this day and age. Therefore, it’s important to tactfully approach this concept with an open mind. To help with your research, many of the most reputable lending agencies now feature a resourceful home equity release calculator, which allows you to compare the facts and figures from the comfort of your computer chair without any obligation. So open up your web browser and start conducting some research today!