Thursday, August 18, 2011

Why Equity Release Could Be The Perfect Financial Foundation For ...

Since the financial crisis in the UK, it is no longer possible to obtain mortgage with a loan to value over around 90%.

before the economic crash, this was the way the majority of people would make those long overdue home improvements or luxury holidays, it was simple enough, you?ve paid for your house, now let it pay for you. In the tough times of 2011, such mortgages are rarer than Faberge eggs.

Nowadays, this is not possible, but for those over 50 it is still possible to unlock some of the money in your home in order to use the funds how you wish. You could go on a well deserved holiday, but many opt to use the funds in order to undergo home improvement projects to add value to the property.

In return for a share of the proceeds from the eventual sale of your home (normally after your death) a lender will advance part of your home?s value. The cash ordinarily comes in either a lump sum or as a monthly payment. It means that you can remain in your home but still benefit from the equity you have built up, although these remortgage deals are typically only available to applicants aged 60 or over.

Once you have received the money you can use it to pay for a range of improvements. This may be a new kitchen or bathroom, an extension or conservatory or simply installing a new central heating system or boiler.

When you retire, jobs around the house may suddenly be more pressing. You may have been delaying home improvements whilst you were working but now have time to undertake all those repairs and other jobs.

Your enjoyment of your home could be enhanced by the installation of double glazing or even some improvements to your garden such as new fencing or gates. Improving your home does not necessarily have to involve a refit or structural work.

For example, simply repainting your home into a more neutral colour or replacing your curtains and carpets can make it more attractive. Having your garden professionally landscaped can create a lovely outdoor area which may also appeal to prospective buyers.

If you do need to undertake repairs or redecoration to your home, equity release schemes can be the perfect way of providing the funds. You can take advantage of the remortgage rates offered by these schemes and benefit from a bespoke plan that ensures you don?t have to make substantial repayments every month.

Before taking on an equity release mortgage, it is important to speak to your family as of course it will affect inheritance because some of the value of your home would have to be repaid on your death, which could come as a surprise if they had not been informed earlier.

Timothy Frodsham writes for JustRemortgages.com one of the UK?s top sites for the latest remortgage rates and best remortgage deals.

Source: http://www.how-to-tips.com/uncategorized/why-equity-release-could-be-the-perfect-financial-foundation-for-funding-home-improvements/

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