Equity release schemes offer people the chance to release the equity on their houses as loan amounts. People around the age of 55-60 remain eligible for these schemes and can easily generate finance for the rest of their lives through these equity schemes. There are various companies and financial institutions which offer equity release schemes. Each company has its own equity release plans and they have their own set of requirements and conditions. One such company is Aviva which offers Aviva Equity Releaseto people over the age of 55 who own a house.
Aviva is one of the most trusted names in the industry and remains a preferred choice of the people. The reason behind this is the fact that Aviva is one of the oldest institutions that offers equity release schemes. Aviva was earlier known as Norwich Union before the expansion started in 2000 and the company came to be known as Aviva. One of the largest multi insurance companies in the world at the moment, Aviva has now evolved into a brand.
Aviva Equity Release is popular without a shadow of a doubt and there are two reasons behind this popularity. One reason is the fact that Aviva is now a brand. Just like all the lines of a popular clothing brand become famous and popular, all products of Aviva get popular by default as well because of its excellent and bankable brand name.
Secondly, the popularity of other products offered by Aviva brushes off on the equity release schemes offered by Aviva as well. People who have worked with Aviva as a part of their insurance plans, investment opportunities, annuities and retirement plans use their equity release offering simply because they have had a positive experience working with other products offered by Aviva.
One must not also look over the fact that the two-fold equity release offered by Aviva is excellent and that some of its popularity lies in its excellent package. Aviva offers Lump sum Max and Flexible option as its two equity release packages so as to suit the requirements of applicants of all types. All this contributes to the popularity of Aviva equity release schemes.
A home reversion plan is an equity release scheme that gives homeowners the opportunity to sell their property or a part of it in order to obtain money that they can spend on whatever they want. A home reversion plan allows homeowners to remain in their home although they have transferred the legal title of their home to the home reversion provider. They are free to remain in their home rent free until they pass away or until they are no longer capable of taking care of themselves.
A home reversion plan is portable. This means that if for any reason homeowners need to move to a new home, the plan can be transferred to the new home as long as the new home is eligible. One of the advantages of a home reversion plan is that homeowners are not required to sell their entire property. If they sell just a part of it, they can leave the other part as an inheritance for their family.
The home reversion plan is not one of the most popular equity release schemes due to the fact that the property is sold for less than its market value. The home reversion provider purchases the property for a lower value as a form of compensation for allowing the homeowners to continue to remain in the property. If the homeowners would like to buy back the share of their property that they sold, they will have to pay the full market value. So they still end up losing.
Aviva is one of the best known & trusted equity release provider. Aviva has been providing home reversion plans as well as lifetime mortgages to homeowner over the years via Grainger PLC. However, they have now decided to withdraw its home reversion plan with immediate effect.
Most people choose the home reversion plan because it provides them with the option of being able to leave an inheritance. This option is now being included in the roll-up lifetime mortgage schemes of Aviva which is why it has decided to no longer place emphasis on the home reversion plans.
When homeowners are considering equity release, it is advisable for them to involve their family in the decision process as any decision will impact on their eventual inheritance.
This will depend on the type of scheme you are applying for. For instance the maximum releases are usually available on the lifetime mortgage schemes such as the AVIVA lump sum max. For example a single male aged 65 can release a maximum amount of 30% of the property value on standard terms.
However, there are now three enhanced lifetime mortgage providers; Partnership, AVIVA & more2life. They will offer a higher release should answers from a health & lifestyle questionnaire be in your favour.
Therefore, if there are such issues with diabetes, heart attack, cancer, on medication or even a smoker, then a single male may qualify for an enhanced lifetime mortgage plan of upto 38.5%.
On a £200,000 property valuation this could mean an extra £17,000 tax free lump sum from the equity release company. So if you are looking for as much as possible the first port of call would be check medical history & see whether you qualify for the new enhanced equity release schemes.