Everybody works hard throughout their life so that they get a peaceful retired life but the savings, investment and pension are not sufficient to lead life peacefully. Mostly people do not plan their retirement in a proper manner and have to struggle with finances at the time when they should relax and enjoy the fruits of the hard work they have done. At such times Release Equity in Home can be helpful.

Release Equity in Home acts as a damage-control vehicle and not as a retirement plan. The features of this scheme are: 1) you can take loan against your house either in lump sum, regular income or both, 2) you can continue to stay in the house, 3) you are not required to repay the loan as long as you live and 4) the loan will be repaid from the sale proceeds of the house after your and your partner’s death. Therefore, equity release provides extension to comfort and well-being without compromising on security.

There are generally two types of Release Equity in Home schemes. They are: a) Lifetime mortgages and b) Home Reversions.

In Lifetime mortgages you can take loan against your house which will be repaid from the sale proceeds of the house upon your death. The loan can be in lump sum or in monthly instalments. Although it is almost like a regular mortgage, except that you do not have to repay it on regular basis. In some cases one may choose to pay the interest and the principal shall be repaid upon sale after death. In Lifetime mortgages both the ownership and possession is retained.

In Home reversion a portion of your house is sold for a loan. In this case you can either choose to take the loan in lump sum or in instalments but not both. When the house is sold, a share of the proceeds goes to the loan provider and the balance is passed on as inheritance. However, in case of Home reversion the possession is transferred but you can continue to live in it.

Equity Release can be understood in this way, suppose you own a property, it can be a house a piece of land or any other object of value, this property is worth a certain value of money when sold in the market. Equity Release allows you to receive some money either in lump sum or in instalments against the property that you own. The advantages of Equity Release are that you can get finance without losing the possession and ownership of the property. You need not repay the loan; the company from which you have borrowed money will take it back when the property is sold. However, it is important to get proper information about equity release before entering into such deals. It is best to take the advice of professionals.

Therefore, with proper information one can take loan in form of Release Equity in Home or Equity Release as it is really helpful. You can do some research online to know your options.