Home Income Plans - Income raised against property equity
Home income plans are schemes which enable the customer to tap into the value of their home without having to sell it and move out. Typically used by retired homeowners, consumers have found that these plans could provide a safe and successful method of releasing regular cash income. Home income plans are becoming more popular since the value of property has soared recently which has led to a rise in the number of people with greater equity in their homes.
Example. Home Income Plans.
Selling off part of a property or remortgaging in return for a regular cash income is often used to supplicate a pension or to repay other outstanding finance products owed. Although a part of the property is sold the right to live in it should be retained. At death the property is usually sold and the percentage owed to the company repaid. UK home reversion schemes normally allow the release of finance between 25%-90% of a properties value. At the death of the policy holder the property is usually sold but offspring wanting to retain possession of the family home could repay the amount owed to the lenders and keep the property. This could be subject to the individual policy and the lenders terms and conditions, and perhaps should be considered prior to the home income plan being agreed.
Home Income Plans Information
Any consumer considering using their property to raise finance should ensure they are aware of the terms and conditions that apply before taking on any product secured on what is typically their largest investment.
Points to check include,
Right to live in the property for life?
Freedom to move property without penalties?
Receive a cash sum or regular income payments?
Duration of home income plan if any?