Equity Release for the Elderly – Can help boost retirement income

by admin on September 2, 2010

Most people you speak to about equity release for the elderly think you have to take a lump sum. The answer is that you can take an income if required from an equity release scheme. Whilst none of the current range of equity release plans for the elderly and retired home-owners are ideal, there is a work around that can be done.

Could Elderly Pensioners keep their state benefits and still apply for Equity Release Plans?

Many elderly retired pensioners would welcome an additional £100 per month and the difference that can make to their daily living. Equity release can fund a monthly income that could be sustainable for the rest of their lives. There are some pensioners though that feel they may lose entitlement to some benefits they may be receiving. We asked independent financial adviser Jennie Gray from Retirement Solutions to answer that question.

Jennie Said, “A qualified and independent equity release adviser would use some form of state benefits comparison software to ensure that the client was not worse off by applying for an equity release scheme. There would be no point increasing income with an equity release scheme only for the client to lose some means tested state benefits afterwards.”

equity release for the elderly

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Equity Release – How much can you raise?

by admin on August 31, 2010

Here at retirementsolutions.co.uk we are asked daily “how much can I raise with equity release“. The answer we always give is: With Equity Release, the amount you can raise depends on your property value and your age, or the age of the youngest applicant, if they are two or more.

The minimum property value most equity release providers will accept is £70,000 and you or the youngest applicant will need to be at least 55 years old.

The easiest way to find out how much you can release is to use an equity release calculator, this will very quickly tell you how much you can raise from the home equity. All you need to do is enter your property value and your age and in a few seconds the equity release calculator will tell you how much equity release you can raise. You can find an equity release calculator on this website or do a search on the internet.

The amounts you can raise vary from each equity release provider, but generally speaking today you could get a maximum of 21% of your property value if you are aged 55 and 49% of your property value if you are aged over 90 years. These figures are for lifetime mortgages, you normally can get more from a home reversion scheme but would normally have to be over age 65 to qualify.

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Equity Release Interest Only Mortgages

August 29, 2010

Choices for equity release include equity release interest only mortgages. These are where you pay interest on the outstanding amount, unlike traditional equity release where you make no monthly repayments.
What are the advantages of equity release interest only mortgages?
The biggest advantage of an interest only equity release is that the debt or loan remains constant. [...]

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Sale and Rent Back – Last Resort or Not?

August 23, 2010

The Financial Services Authority (FSA) recently issued some new rules as part of the final regulations of Sale and Rent back Schemes. The Sale and Rent back schemes have come under scrutiny recently as the FSA say some firms are exploiting vulnerable customers.
The Consumer Financial Education Body (CFEB), which now operates the FSA moneymadeclear website [...]

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How to find the best Annuity Pension

August 22, 2010

I remember my father telling me how delighted he was to reach retitrement age and how so many of his good friends had never made it. He was also telling me how difficult and confusing it was choosing his annuity pension.
What is an annuity pension?
An annuity pension is where you swap your pension pot for [...]

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Importance Of Advice

August 20, 2010

Equity release is an increasingly complex area of financial planning for those over age 55, and due to the number of plans and providers requires expert advice. The decision to take out an equity release plan requires a full analysis of the advantages and disadvantages of each of the products. Additionally, the impact [...]

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Surge in equity release advice enquiries reported by IFAs

August 18, 2010

Since around September 2008 the sales of equity release products have been flat. This coincided with the collapse in the housing market which saw house prices fall quite considerably and consumer confidence at rock bottom. At the same time, partly due to funding problems and partly to low volume of sales many equity release providers [...]

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Financial Worries in Retirement Making the Elderly Sick

August 16, 2010

A recent report conducted by AXA states that a significant percentage of the elderly pensions in the UK are actually becoming unwell due to their financial situation. There has been much written regarding the rise of financial insecurity of the elderly, we are now seeing the manifestation of this financial situation is leading to physical [...]

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Home & Capital Equity Release Specialist Remains Open

August 15, 2010

Home & Capital equity release specialist, remains open for business following the acquisition of its parent company, Sovereign Reversions plc, by Grainger plc, the UK’s largest listed specialist residential landlord.
Graeme Marshall, Chief Executive of Sovereign Reversions plc, said:
“The advent of a new parent company for Home & Capital marks a [...]

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Equity Release Schemes – Have You Considered Interest Only?

August 14, 2010

In General terms an interest only are not traditional Equity Release schemes because you don’t have to be over age 55 to qualify. But they are a popular option for people over age 55 that want to pay interest on their equity release schemes and keep the debt fixed.
How does an interest only equity release [...]

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