<p>The demographic changes in the UK lead to an increased demand of financial solutions amongst pensioners who are aiming to meet their financial commitments. Consequently, an increase in mortgage lending could be recorded and this trend has been increased by the changing economic environment. Although home equity release schemes are available for some time already, pensioners are often not aware of the available possibilities they possess. However, as releasing money from your own property is a long term commitment which affects the whole family, extensive expert financial advice is needed prior to any decision making. Stonehaven-uk.com, a specialized, award winning equity release specialist is happy to help you.</p>
<h2>Options to Release Equity in your Home: Lifetime Mortgage or Home Reversion</h2>
<p>With the help of a home equity release scheme pensioners are enabled to get tax free cash out of their house without selling it. The amount a person is entitled to depends upon his/her age and the value of the house. Although mortgage-based schemes are the most common approach to equity release, there are also home reversion plans available.<br />
A lifetime mortgage means that a loan is received which is secured on the receiver’s home. The loan and its interest will be paid back as the receiver dies or moves into a long term care facility. Here, no negative equity is guaranteed, which means nobody needs to pay back more than the property is worth. According to the Guardian, pensioners at an average age of around 69 tend to apply for a lifetime mortgage, although it is already available to younger people from 55 years. In contrast, a home reversion plan means that the house or a part of it is becoming sold and the owner remains the right of living there like a tenant.<br />
Before a person decides on any of these two options, it should be ensured that other alternatives have been considered as well. Often there are other ways available to release cash. For instance, a room or a part of the property could be rented to a lodger or other equity could be sold. Moreover, in the case pensioners are in need of a big lump sum for necessary investments into their homes, they can enquire help from the state or state benefits. Another option is to either move in a smaller home or to a cheaper area in the country. However, the decision to setting up an equity release plan cannot be done alone, but rather needs discussion in the closest family circle. As long term financial commitments affect the families’ inheritance, it must be ensured that everyone involved feels comfortable with any decision made.</p>
<h2>In Conclusion</h2>
<p>Consequently, anyone interested should inform oneself about all the financial risks and alternatives. Therefore, professional help is needed to assess if a home equity release is a suitable solution. Click here to learn more about available services of Stonehaven.</p>

Home Equity Release for Pensioners
