Over the years, there have been so many myths and misconceptions surrounding the home release program. Some of them have been so harsh and contributed majorly to the downfall of the project before it began. However, with the advancement of technology to pass along the correct information and also through notable experience over the years, equity release has gained so much understanding and people are able to learn the truth. There are different types of equity release programs with the most famous being Responsible Equity Release. However, the others are clearly defined and no one is pushed to choose a certain equity release. The advantages and disadvantages of each equity release program are properly laid out to you before you commit to one and you are advised on the best that will serve you better. Before you commit to an equity release program which is long term, here are some of the things you should know about releasing equity from your home:
1. You still keep full ownership of your property. Equity releasing for your home does not mean that you have sold your house or any part of it. On the contrary, you get to maintain full ownership of the property, the title deeds are in your name and no one can claim that the house is theirs. This is the case if you choose equity release program. You can live freely in your home with your partner for as long as you like without being bothered by anyone. Responsible equity program is advised because it makes one feel safer in his or her own home and you get to enjoy old age with peace of mind and in no hurry.
2. The amount calculated is the true worth of the house. With equity release program, there are no frauds as the calculator is universal and done as you witness. The problem in the past was poor calculation or numerous deductions that attracted a very low amount of money and seemed as a loss or being robbed. Today, the calculator is digitised and the figure reached at is the correct worth of your property. The maximum percentage is about 75% and the amount added the rate at which the place is developing and how much it will be worth in future.
3. The amount is tax free. This is an added benefit that is attracting many clients as a tax free amount means that you get the bigger share that you deserve. The amount reached at can be given directly all of it at once to you or you can choose they be depositing a specific amount in your account monthly. There are benefits and limitations for both scenarios that you should be aware of.
4. There are no debts left behind. This is a major concern to many clients who opt to release equity from their home. The responsible equity program offers one with the amount that can be easily cleared out once by selling the home and your loved ones are given a duration of 12 months which is much lenient time to have cleared any bill if any.
You should be conversant with all the procedure as they will be explained to you in detail and as you enrol into the equity release program, be sure it is the right one for you.