Every one of us is aware of pensions. It is a very good and only source of income for retired people who have toiled their greenest part of life for service. After recession hit the global market pension amounts got lessened day by day thereby creating huge problems for retired people. Some retired people who are somehow managing with very less savings & equally less pension have living properties which may actually be of great value. But they can not sell it or give it in a mortgage, because that may lead to them living under the sky some day. To deal with all of these, release equity home came into market. Let me explain the concept of this release equity on house in details.

Release equity home is also known as lifetime mortgages. If a retired person needs money for any reason, like buying car, holidays or some daily need they can opt for this plan. They will get money against their home till death. After his death the house will be a property of the organization which has given the loan under the release equity home.

There are certain circumstances that are totally uncalled for like accidents or hospitalization. In these situations the meager pension amount you receive every month or the savings of your lifetime or even the investments you have are not enough to deal. Selling your home is not an option as that will leave you without a place to stay. In such cases, release equity on house is your best option. You get an amount depending on the value of your home without having to leave it. The loan is given as monthly cash money instead of a one time hefty cash amount enabling the value of your home to depreciate slowly. If you take the loan amount as one time cash that will lead to the value of you house being depreciated in a steep manner hence it is better to avoid.

The best think about the scheme of release equity home is that you can still call the place your home. You can stay there until your death after which the property will be taken by the lender. This option is best suited for people who do not have any heirs as putting up your home for release equity home means that you would not be able to leave an inheritance for your beneficiaries, this is the biggest and the only disadvantage of release equity on house. But this will also mean that you would get a hefty reduction on your inheritance tax which you would have had to pay eventually.

If you are at least 60 years of age, have a home in your name and the house is in pretty good condition, you are eligible to apply for release equity home. You can forget all your worries if you satisfy the above mentioned criteria, as you have a solution at hand readily available to help you out of any situation regarding the need of surplus funds.