How You Can Raise Retirement Funds
If you are over 65 years old, own your house and need to raise funds to help enjoy your retirement, you might like to consider the use of a Home Reversion Plan. Here is more information about the way these kind of Equity Release products work:
What Is A Home Revision Plan?
Home Revision Plans are designed to let you use some of the money that`s tied up to your house. There are no restrictions on what you can use the money for and you have the advantage of being able to stay living in your own home whilst you enjoy spending it.
How Does A Home Revision Plan Work?
A Home Revision Plan works like this: you sell a share of your house to a financial company (usually a large insurance company) for less than its market value. In exchange for your sale, you will receive a tax-free lump sum or regular income. You will be a tenant of your home and you might need to pay a small change for rent each month.
When your house is sold, usually when you die or move into long-term care, the insurance company will get their share from the proceeds of the sale. Where you have sold a share of your house instead of the whole amount, the remaining share will be sold and distributed in accordance with your will, if you die, or according to your requirements if you move into care. You will therefore continue to benefit from any increases in the value of your home.