Equity release is quite popular in the U.K, and for good reason. It frees up equity from your home, giving you money to venture into other businesses or just enjoy life. Best of all, you retain full ownership of your home. This makes equity release quite an enticing way to access money. But who exactly qualifies for equity release? Well, any U.K homeowner above the age of 55 qualifies for equity release. However, there is more to it than just being a homeowner. To help be more informed on equity release, here are 4 tips on who qualifies for responsible equity release.
1. Anyone who has their succession plan fully figured out
There are different forms of equity release available in the market. One of them is a lifetime mortgage. With this form of equity release, you take out 100% of the equity of your home. Companies like responsible equity release give you this equity, and don’t require you to repay it in the course of your lifetime. The company recovers the money by selling the house after you die. While any homeowner above 55 years qualifies for this loan, you would be more qualified if you know your dependents are financially secure. Otherwise, you would live well, but leave them in a life of struggle, since your home won’t be part of their inheritance. Before taking this route, make sure your dependents are taken care of, or they are in a position to repay the loan and take the house back.
2. Anyone with a good business idea
It’s not just people who want to enjoy their retirement that can take out equity release. Even a homeowner with a good business idea can take out equity release too. Such a person is fully qualified for a flexible lifetime mortgage. This type of equity release is structured in such a way that, you can make monthly repayments to repay the debt. This means that if you have a good business idea, you can take equity release, repay the loan, and take back full control of your home within your lifetime.
3. Anyone who is not fully reliant on government benefits
As you grow older, there are certain government benefits that are essential to making life more comfortable. However, these are mostly more important to people in the lower income bracket. When someone in that bracket goes for equity release, it can affect their ability to access some government benefits. However, if you are well off, and are not heavily dependent on government benefits, then equity release would be perfect. You get the money to enjoy life in your sunset years, without compromising on other facets of your life.
4. Anyone above 55 years struggling with a mortgage
One of the advantages of equity release is that it frees you of the burden of mortgage repayment, while at the same time giving you full control of your property. This is perfect for anyone over 55-years that is struggling with a mortgage. Such an individual frees up time and cash to not only enjoy life, but also make investments that can help them be remembered better by their descendants, long after they have left this world.