A Plan That Brings You Out Of Financial Trouble After Retirement
After retirement we all want to lead a comfortable, relaxed and happy life. We want to get rid of tensions and worries and lead a life that is devoid of hassles. We also think of continuing with hobbies we had to forgo due to our careers. In order to lead such a relaxed life we have to make sure that we have saved up enough to last us all our lives.
However, we do not know what the future holds for us. We do not know what danger awaits us round the corner. After retirement, when monthly income stops we are unsure about what may happen to us. At that point of time, any kind of medical exigency may cost us dearly and all our savings will be exhausted by just one visit to the hospital. To prepare ourselves to face such challenges we must not only bank on savings.
After retirement, we must make sure that we have things under control so that we do not have to panic in times of trouble. However, if you face any sort of financial trouble in the years after retirement you can always resort to after retirement income plans like equity release. Instead of selling off the property you own you can release equity on it. Equity release mortgages can really help you take care of your bills in times of a financial shortage after retirement.
To qualify for equity release schemes you have to fit a certain criteria
There are mainly two kinds of equity release schemes you can opt for:
Lifetime Mortgages
This scheme allows you to borrow a share of your propertys value. An interest is charged but you do not have to repay anything till your last breath or till you sell off the house.
Home Reversion Scheme
This scheme is only valid for people who are 65 years of age and above. According to this plan you have to sell a portion of the property to the source for a price less than the market value. You can stay in the house till your last breath. When the property is sold, the source has to receive the same portion of what you sold to the source. For example, if so sold 20% of the property to the source then after the property is sold off, the source should receive 20% of the sale price.
However, we do not know what the future holds for us. We do not know what danger awaits us round the corner. After retirement, when monthly income stops we are unsure about what may happen to us. At that point of time, any kind of medical exigency may cost us dearly and all our savings will be exhausted by just one visit to the hospital. To prepare ourselves to face such challenges we must not only bank on savings.
After retirement, we must make sure that we have things under control so that we do not have to panic in times of trouble. However, if you face any sort of financial trouble in the years after retirement you can always resort to after retirement income plans like equity release. Instead of selling off the property you own you can release equity on it. Equity release mortgages can really help you take care of your bills in times of a financial shortage after retirement.
To qualify for equity release schemes you have to fit a certain criteria
- You have to be 55 years of age or above
- You have to be the owner of the property
- You have to make sure that the property is not under any litigation
- You have to make sure that there is no existing mortgage on the property
- You have to make sure that the property is in top class condition
There are mainly two kinds of equity release schemes you can opt for:
- Lifetime mortgages
- Home reversion schemes
Lifetime Mortgages
This scheme allows you to borrow a share of your propertys value. An interest is charged but you do not have to repay anything till your last breath or till you sell off the house.
Home Reversion Scheme
This scheme is only valid for people who are 65 years of age and above. According to this plan you have to sell a portion of the property to the source for a price less than the market value. You can stay in the house till your last breath. When the property is sold, the source has to receive the same portion of what you sold to the source. For example, if so sold 20% of the property to the source then after the property is sold off, the source should receive 20% of the sale price.
