People above the age of 50 are provided with multiple benefits, ranging from reduced insurance premiums to even several cases of dissolved repayments. Although these cannot be manipulated in your favor, you are eligible to get such rewards if you have been honest with your documents and regular with your payments. One such feature in the real estate sector is equity release, which is a range of products that lets you access the cash tied up in your home. The money can be released as a lump sum or a combination of smaller amounts. If you are not aware of this feature, it is high time you learn about its applications. Let us take a closer look at the equity release and equity release calculator.
When you are opting for this feature at the right age, you will be provided with two choices:
• Lifetime Mortgage
With this option, you will retain ownership of your main residence, but you take out a mortgage on the same property. You are given a choice to make the repayments or let the interest roll up. When you do so, the accrued interest will be paid back when you move into long-term care or die.
• Home Reversion
A part or all of your home is sold to a home reversion provider in return for regular payments. Until you die, you can live in this property, but you must maintain and insure it. The remaining proportions of ownership are considered when the property is put for sale at the end of the plan.
What is an Equity Release Calculator?
This is the tool you must be using when you want to release equity from your home without selling or moving out. Over the past few years, more people over 55 are considering this option to stay afloat in the crises. Lifetime mortgages are being taken more frequently these days to boost the retirement income. When you have these ideas simmering in your head, an equity release calculator will help you find the right solution to the piling up expenses. An instant, no-obligation estimate of the money you can unlock from your home can be generated with this calculator. It will also provide you with a clear picture of the money and risk involved, meaning it projects itself as a good or a bad option based on your requirements and current account credit.
How Does the Calculator Work?
Since it is mostly people above the age of 50 who use this option, the calculator has been made as simple as possible. Learning its applications isn’t difficult or time-consuming. You only need to enter your age, the value of your property and your contact details to receive an instant calculation of the maximum and minimum amounts available for release. Online home value calculators can be used if you don’t have the exact value of your property and want an estimate.