Equity Release - The Midas Touch in a Retiree's Life

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By: kylasmith
on 3rd Feb,2011

Equity Release - The Midas Touch in a Retiree's Life


With
every cut in the interest rate by the banks, the retirees are moving
from the pillar to post . They are slipping into more trouble as their
savings are not bringing them satisfactory return as before. In the
post-retirement phase, they heavily rely on their savings and pension.
Monthly expenses are exceeding their income and thereby adding to their
penury and plight. As the prices of the essential commodities are on the
rise, meeting day-to-day living costs has become a major problem for
them. They are in dire need of the Midas touch and it may come in the
form of an equity release policy.

The recent study has revealed
the fact that the 'release equity' option is the second preferred choice
for the house owners to append to their monthly income to maintain or
even improve the life index. With the prices of the necessary
commodities escalating and income scaling down, the living index is
taking a nosedive. Equity release can single-handedly push this index in
the upward direction.

Equities are released out of the
properties. They remain idle but continue to grow with the passage of
time. When you purchase an equity release scheme, the piled up equities
are unshackled and translated into cash. With an additional flow of
income, now the senior citizens are able to lead a comfy life as they
once dreamed of.

Equity release schemes are of various types but
the home reversion plan and lifetime mortgage are the commonest of
them. The first category involves the sale of the entire or a part of
the property in return of either lump sum income or steady flow of
promised payment. Even after the purchase of an equity release policy,
you do not loose the right to live in your house. You can move to the
other locations for good and ever as per as your wish or continue to
live in the same house till your death. With a lifetime mortgage, a
house-owner gets the loan against his property value. If full repayment
is not made to the lender, he collects it from the forced sale of the
property after the retiree's death as per as the agreement. Equity
release is just like an oasis that quenches your thirst for a relaxed
retired life.


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