Ms. Career Girl

Top Menu

  • Home
  • Media
  • About
    • Terms of Use & Copyright Notice
    • Privacy Policy
  • Advertise
  • Contact
    • PR and FTC Disclosure
  • Subscribe

Main Menu

  • Home
  • Careers
    • Productivity
    • Career Confessions
    • #SideHustle
    • Job Search Advice
    • Resume Optimization Tool
    • Job Board
  • Lifestyle
    • Life After College
    • Health & Beauty
    • Style
    • Money
    • Travel & Leisure
    • Product Reviews
  • Relationships
    • Dating
    • Marriage
    • Working Moms
  • Specials
    • Real Career Girls
    • Style Your Life
    • Book Club
    • Giveaways
  • Home
  • Media
  • About
    • Terms of Use & Copyright Notice
    • Privacy Policy
  • Advertise
  • Contact
    • PR and FTC Disclosure
  • Subscribe

logo

  • Home
  • Careers
    • Productivity
    • Career Confessions
    • #SideHustle
    • Job Search Advice
    • Resume Optimization Tool
    • Job Board
  • Lifestyle
    • Life After College
    • Health & Beauty
    • Style
    • Money
    • Travel & Leisure
    • Product Reviews
  • Relationships
    • Dating
    • Marriage
    • Working Moms
  • Specials
    • Real Career Girls
    • Style Your Life
    • Book Club
    • Giveaways
MoneyTravel & Leisure
Home›Self›Money›How to Fund Your Holiday with Equity Release

How to Fund Your Holiday with Equity Release

By Maria Bashi
Aug 16, 2019
15027
0
Share:
mortgage broker

Have you been you thinking about retiring or reducing the never-ending hours at work? Do you dream of vacationing in the Bahamas, making those life-changing home improvements, starting a restaurant business, or merely maintaining your lifestyle?

If you do, then you’ll appreciate how vital it is to have the capital to get to go crazy with your financial freedom – and not have to think about how you’re going to pay for these expenses.

However, if you don’t have a substantial pension vessel or savings in place, living comfortably in your retirement could be easier said than done.

It is where equity release comes in and with this simple guide; you can get to learn the ins and outs of this fantastic financial product and how to use it to fund your dream holiday.

Be sure to check out sovereignboss and see how much equity you can release with the equity release calculator.

 

What is Equity Release?

Equity release is a range of products that allow you to access the equity (cash) tied up in your estate if you are over the age of 55. You can opt to take the money you release as either a lump sum or, in several smaller amounts or as a combination of both.

That said, there are two equity release options:

Lifetime Mortgages

A mortgage can be taken out secured on your estate on the condition that it’s your primary residence. You also have the right of ownership, which is until the life of the loan ends, i.e., when you die or go into residential care.

You can opt to ring-fence some of the value of your home as an inheritance for your family. You’ll have to decide to make repayments or let the interest roll-up. You get to pay back the mortgage and any accrued interest when you die or when you move into long-term care. You can learn more about these here.

payment options

 

 

Home Reversion Plan

With this scheme, you sell part or all of your estate to a home reversion company in return for a lump sum or drawdowns.

You have the right to continue residing in the estate until you pass away, rent-free, but you have to come to an understanding that you will maintain and insure it.

You can choose to also ring-fence a percentage of the manor for later use, probably for inheritance.

At the end of the plan, your lender will put up the home for sale, and they share sale proceeds according to the remaining proportions of proprietorship.

Is It Secure?

Unlike in the 1980s and early 1990s, today the equity release market is controlled by the Financial Conduct Authority (FCA), and most equity release companies are signing up to the Equity Release Council, a trade body that sets the ideals for equity release schemes.

As part of these standards, the Council states that:

  • Interest rates must be fixed, or if adjustable, there must be a higher limit or cap that is static for the life of the loan
  • You have the freedom and right to stay in the estate for life or until you opt to move into residential care. Just so long as you abide by the terms and conditions of your mortgage,
  • The lifetime mortgage must come with the ‘No negative equity’ guarantee meaning that when the plan provider decides to sell your house and the lawyers’ and agents’ fees have been taken into account, if the amount left is not sufficient to pay the outstanding loan, neither you nor your manor will be liable to pay any more.

Equity Release Summary

So to be sure that your equity release plan meets all the required standards, you need to ensure the plan provider you choose is a member of the Equity Release Council.

An equity release plan could be a simple way to unlock the cash in your estate and assist you in making your retirement unforgettable and worthwhile. However, it’s vital to consider whether it’s the right path for you.

Make sure that you always seek professional advice before making a decision.  There may be other alternatives more suited to your conditions that you could use to access similar amounts of cash.

Tagsequity release
Previous Article

5 Jobs to Ignite Your Independence

Next Article

Caring for Elderly? 5 Tips for Buying ...

0
Shares
  • 0
  • +
  • 0
  • 0

Maria Bashi

Related articles More from author

  • MoneySelf

    Eww… Credit Card Debt

    Dec 22, 2013
    By Ms. Career Girl
  • Career ConfessionsMoneySelf

    Financial Savvy is Sexy in 2009

    Dec 9, 2008
    By Ms. Career Girl
  • MoneySelfWork

    Save a "Latte" Money!

    Dec 10, 2008
    By Ms. Career Girl
  • MoneySelf

    The Start of Your 2009 Financial Makeover

    Dec 26, 2008
    By Ms. Career Girl
  • MoneySelf

    10 Things You Should Know About Credit Cards

    Dec 27, 2008
    By Ms. Career Girl
  • MoneySelf

    Financial Makeover Week 1: Getting Started and The Truth About Minimum Payments

    Dec 29, 2008
    By Ms. Career Girl

  • Career ConfessionsLife After CollegeSelfWork

    A Tale of High Achieving Career Ladies

  • work in sales
    Life After CollegeSelfWork

    Why an entry level sales job is a great way to kickoff your career

  • Find a Career
    #SideHustleLife After CollegeSelfWork

    Get a Modern Day Career Path Dream Catcher

Subscribe

Job Search

As seen on

career advice blog badge oriel badge

Featured On

  • About
  • Contact
  • Advertise
  • Resume Optimization Tool
  • Privacy Policy
  • Terms and Conditions
© Copyright 2021 Ms Career Girl