Acquiring the most suitable equity release scheme could be the contrast between a secure retirement and a constant anguish over paying the bills. Unfortunately, lots of people in retirement face a considerable drop in income, which often means that they have to consider downsizing their home and moving into something more affordable to secure a more contented lifestyle.

An equity release scheme will allow homeowners aged 55 and over to considerably boost their assets by raising a large amount of money or regular income without having to sell off their property and without having to pay for rent or repayments on a loan.

The latest data from the UK's leading debt charity the Consumer Credit Counselling Service has conveyed that the over 60s are now the quickest growing age group with financial worries. If you're unfortunate enough to find yourself in this group or you want to fulfil your dreams by obtaining a cash injection then an equity release plan could be what you're looking for.

Some key benefits of an equity release scheme

The most evident benefit of an equity release scheme is that the choice is yours to release the equity from your property in a cash lump sum or regular payments. Whatever the option you go for, another significant benefit of your equity release scheme is that the money you acquire will no matter what be tax free.

An equity release scheme can be a secure and functional way to turn some of the market price of your home into real money. Most types of schemes will allow you to remain the owner of your property and you won't be tied to routine repayments as you would with a standard mortgage.

Am I eligible for an equity release scheme?

Despite the fact equity release schemes offer many benefits you need to be conscious of what the impact of releasing equity will have on your estate over a period of time and whether or not your claim to means tested benefits could be affected. It's essential to note that you must be able to erase any outstanding credit secured on the property from the equity you release.

In the utmost of cases you will qualify for an equity release scheme if:

Your partner and yourself are aged 55+ (60 if you're considering a home reversion plan)
You are a property owner with little or no pending mortgage
Your property is worth approx £50,000 or more

If you're thinking about applying for an equity release scheme then it's imperative you choose the right plan. The first step is to seek advice from an independent equity specialist who will look at the entire market and help you decide whether an equity release scheme is for you.

Equity Release Schemes are explained in more detail at Age Partnership.co.uk

Article Source: http://www.ArticleBlast.com