20 April 2010
RISKS IN EQUITY RELEASE PLANS IN UK
Though there are many safeguards to protect the interests and assets of the clients, the client must have a thorough knowledge about the plans prior to taking a decision. The lump sum released will be appropriately calculated using an equity release calculator by the lenders. The principal fund and the interest that incurred are paid by selling the client’s house after his demise. Because of this a life time mortgage plan will reduce the value of the client’s house and this will subsequently decrease the amount of money that the client wishes to give to his family after his demise. The additional funds that are made available to you through equity release UK could affect the entitlement to means-tested state benefits.
If the client doesn’t want to take up an equity release of UK, then he may choose to downsize his property to a cheaper one or he can choose to take a lodge and rent the house and make money for his old age life.
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