Equity release has a role to play in major renovation projects as retirement developments that spring up due to the increasing retired population. The over 55's and baby boomer generation will be requiring such property types as they look to spend their retirement years in comfort. The elderly housing situation seems to be the one part of the property market that is seeing some improvement with markedly increased sales for this age group.
Equity Release can be used for house purchase as in the same way as any residential mortgage, so it’s important to get independent equity release advice to ensure quality advice is provided and the right scheme is selected. So many people have innocently fallen victims of bad planning perhaps due to making rash decisions or overlooked getting the best advice on equity release schemes. What we fail to know is that wherever money is involved, the lender must always have an agenda.
At the moment there are many equity release plans offered by insurance companies and other financial institutions. They have been tailored to suit as many borrowers as possible, but at the end of the day the winner is always the lender. Whether the equity release mortgage is paid off early and they receive their early repayment charge; or it runs its full course the home equity lender will receive compounded interest on the whole amount borrowed. (more...)
