Small Business Tax Center
Small Business Ideas, Grants &
Plans to Start & Run a Business:

Small Business Grants
CyberSchmooz
Network in Cyberschmooz Community Ask Questions Questions and Answers Share Tips Small Business Ideas List Your Business Business Advice from Idea Cafe Experts Coffee Talk with Experts Starting A Business Business Plan Biz Planning | Sample Plans Small Business Ideas Idea Name Your Biz Name Plan Your Biz Plan Financing $ Starting a Business Do It! Running your Business Marketing Tips Promotional Merchandise Marketing Tips Marketing | Sales | Customers Human Resources HR | Employees | Contractors Legal Forms & Tax Information Legal | Biz Forms Managing a Business Managing | Operations
Financing Resources Financing Your Business E Commerce & Webhosting eCommerce Take Out Info Trade Publications FREE Trade Publications Business Books Biz Books Your Own Business Small Business News Small Biz News Gen X Biz Gen X Biz Work at Home Work @ Home Business Information The Fridge - Biz Info on Ice Destress Send Awards Send Awards & Greetings Yoga At Your Desk Yoga @ Your Desk Fun Guide Guide to Find FUN Online About Idea Cafe Press Idea Cafe has received Idea Cafe in the News Idea Cafe's Kudos Kudos for Idea Cafe Advertise on Idea Cafe Advertise on Idea Cafe Privacy Policy Privacy Policy Contact Idea Cafe Contact Idea Cafe Link to Idea Cafe Link to/from Idea Cafe Join Idea Cafe
Search Idea Cafe Site Directory Site Map Online directory to business resources Biz Web Guide



Expert Answers to Biz Questions

Listen in! Pick up some expert advice to a reader's question that we selected from CyberSchmooz.

color business bar

What Are My Equity Release Options?

 

So, you own your property, and you’ve made it just about perfect for you and your needs. Everything seems to be going well, and - out of the blue - something bad comes up to try and ruin things for you. Unfortunately, it means having to get hold of some extra cash: something to which you don’t have easy access. What do you do?

 

Many people in this situation think about using equity release. It means that you can use one of your most significant assets - your home - to get some financial support for whatever you’re looking to deal with right now. Is it an option for you? This is what your equity release options could be.

 

What is equity release?

An equity release scheme lets someone access their property’s value so they can have more cash in retirement. This can seem like an attractive proposition if you have an unexpected expense to pay, or if it looks like you’ll have a pension shortfall.

 

There are two main types of equity release that are available. One is lifetime mortgages, which means you can borrow money against your home, and home reversion lets you sell a share in your property. If you’re not sure which option might be the best one for your needs, visit The Equity Release Experts and find out what your next steps could be.

 

Lifetime mortgages

These are the most common types of equity release plans. If you decide to go for this option, then you will be able to borrow a sum of money that’s secured against your home. You wouldn’t usually make any repayments on this while you’re still living in your property - unlike a standard mortgage, where you would make monthly payments on the capital and interest.

 

Your loan, plus the interest that’s accumulated on it, will be paid from the proceeds of your property when it is sold when you move into long-term care, or you pass away. Your equity release provider should offer you a no-negative equity guarantee, so the amount owed will not exceed the value of your property.

 

Home reversion

Using this type of plan means that you sell your property to a private company. In return, you will then get either a regular income, a lump sum - or a combination of both.

 

A home reversion plan should mean that you can remain living at your home either until you pass away or move out. Your provider will generally pay you 30% to 60% of your property’s market value because you will still be living in it.

 

The amount that you could receive will depend on several factors. This will include how old you are, as well as how long your provider expects you to stay at the property or how long you may live.

 

You will need to sign a lease or tenancy agreement so you can stay living in your property once it has been sold to a home reversion plan provider. You may also have to pay a nominal amount of rent - such as £1 or £2 a month.

Google      

Small Business Tax CenterIdea Cafe HomeSign UpBiz Grant CenterCyberSchmoozCoffee Talk with ExpertsPeople in Biz ProfilesStarting Your BizBiz PlanningRunning Your BizFREE Trade PublicationsMarketingFinancing Your BizHuman ResourcesLegal & Biz FormsManaging Your BizeCommerceYou and Your BizGen XWork@HomeThe FridgeDe-StressSend an AwardSend an eGreetingYoga @ Your DeskWeb GuideIdea Cafe in the NewsAbout Idea CafeAdvertise on Idea CafeContact UsPrivacy PolicySite MapSmall Biz News

Copyright 1995-2020, Idea Cafe Inc. Downloads are for personal use only, not for resale to others, and may not be reprinted in any form without written permission from Idea Cafe Inc.

DISCLAIMER: We hope whatever you find on this site is helpful, but be cautioned that it may not apply to your own situation, or be totally current at any given time. Idea Cafe Inc. and all of its current and past experts, sponsors, advertisers, agents, contractors and advisors disclaim all warranties with regard to anything found anywhere on this family of websites, quoted from, or sent from Idea Cafe. and its related sites, publications and companies. We also take no responsibility for comments published by others on these pages.

TRADEMARKS: The following are Registered Trademarks or Servicemarks of DevStart, Inc.: Idea Cafe®, Online Coffee Break®, The Small Business Gathering Place®, Take out Info®, Biz Bar & Grill®, Complaint-O-Meter®, A Fun Approach to Serious Business™, CyberSchmooz™, and BizCafe™.