The term equity defines money which you have in the form of a property that you own. Equity release is a method of releasing this money from your property without having to move away from your property. Equity release has only recently become popular but the fact is that they have been around for a very long time. The first equity release scheme dates back to 1965.
The qualifications for equity release are quite simple. The accepted age is 55 and the applicant must be the owner of a property. One of the main concerns of equity release is safety. Many people still wonder how safe equity release really is. The fact is that equity release is totally safe and people who apply and obtain equity release are protected by the financial laws of the country.
SHIP which stands for Safe Home Income Plan was established in 1991 and provides legal equity release safeguards. This body provides coverage for almost all providers of equity release schemes. When choosing an equity release provider, you should choose a provider that is a member of SHIP. Home owners are given the right to remain in their property by providers of equity release who are members of SHIP. They are allowed to stay until they die or until they move into long term care and no longer need the property. SHIP also guarantees home owners that their equity release plan will never become more that the value of their property. Once their property is sold, there will be sufficient funds to repay the loan.
Therefore, if you want to guarantee your safety, you should choose an equity release provider that is a SHIP member which offers you a number of other benefits apart from safety. You are entitled to legal advice and a better choice for portability which means that you are free to move your house.
In conclusion, equity release is a safe choice and makes it possible for pensioners to have an additional way of obtaining income in their retirement period. They are fee to use this income as they please to meet their everyday needs. There are no restrictions.
