An equity release is a scheme where a retiree or a person aged over 55 can gain access to the equity they have accumulated in their home while they continue to live in it. There is a wide variety of equity release schemes available today, and one can use then for various projects like home renovation projects amongst others.
However, lenders will require an estimate of works to be completed and costing to be done accordingly. Some lenders will not release the funds until the project is completed, which can cause issues. The best idea would be to find a builder who is willing to wait until work completion to be paid. Hence, it is always wise to obtain independent advice on equity release schemes to avert money woes during periods of any of these renovation projects.
Anyone considering this monetary action needs to be careful since the law governing the industry have been changing, hence the need to seek advice from a skilled and licensed financial consultant. They will help you make an appropriate decision, which suits your fiscal needs and which leave you maintaining your home completely as you renovate it. Equity release is straightforward but an economic expert may point out things that are not evident to you, which might save you from apparent trouble.
Some of the ways in which you may be able to use the money is by investing in a worthy cause, for instance, paying school fees for a child, or renovating the home and giving it a better aesthetic appeal may mean that you have to take out cash out of these schemes. An equity release specialist is very helpful in assisting you get cash out of the property, and get a majority of the funds at the best rates while averting potential legal hurdles that are common.
Many homeowners are apparently concerned about forfeiting their homes for good or having to pay back the money in lump sum, which is expensive, and a competent specialist will help you allay these fears. With protection features in place such as the no negative equity guarantee you can be rest assured that your property is protected by legislation provided by the FSA (Financial Services Authority)
Other ways that retirees may want to spend the money is by taking holidays, and travelling to remote destinations or helping their children gain a foothold on the property ladder. The correct equity guidance is very helpful in assisting an individual achieve this dream and more without compromising on the immediate home or struggling financially in order to achieve this goal.