Being in the property industry for many years, MPG Investments have noticed that there is an increase of property owners who want to release equity in their homes while continuing to live on, in their property.
One option, assuming the banks are willing, is to remortgage and take on more debt, but not everyone has an appetite for more debt. Another option is to enter an equity release scheme which are usually aimed at the elderly. These schemes, however, are extremely complicated and can be surprisingly expensive. Surprising because the real cost of the scheme is very difficult to work out as due the complexity of the arrangement.
Earlier this year, Which?, the consumer group, criticised equity release schemes, which allow people to unlock money tied up in their property.
They noted that most of these policies were expensive, inflexible and risky. The schemes are a type of mortgage which typically allows elderly home owners to cash in on the value of their homes but, repay the debt on death.
In the latest edition of the Which? magazine, it says equity release schemes can be riskyalso a standpoint of the Financial Services Authority (FSA) "The majority of the products available just aren't doing the job fairly, they are not giving value for money and they are not explaining the risk properly upfront," said Which's principal researcher, Theresa Fritz.
However, expensive equity release schemes are not the only way.
MPG Investments has many satisfied clients that have used our Sell and Rent back service to release cash tied up in their homes as a genuine alternative to equity release.
In principal the benefits are the same. You sell your home but are able to rent it back. However, with MPG's sell and rent back scheme, MPG actually buys your property from you and then you rent it back at a normal market rent. This way you have all the money from the sale to do with as you wish. Obviously, you will need some of this money to pay the rent, but the key thing is that the money is yours to do with what you want. Whether it being to spend it on holidays, new businesses or just put it aside for a rainy day. Perhaps one day you might even decide to buy a property again. The point is with all the money paid to you, your options are really open. Moreover the MPG sell and rent back scheme is really transparent. We tell you how much we will pay you for your property and how much the rent will be. Compare this to equity release - How can you evaluate what you are actually getting for your home and what rent you will be paying for instance? All you are told is, here is a lump sum and a tenancy for life.
MPG's alternative to equity Release provided through our Sell and Rent Back is ideal for customers who:
* Need to release equity in their homes to pay off loans, invest in a new business or for other reasons but don't want to leave their home.
* Want to avoid expensive equity release schemes. These schemes are generally targeted at older customers and, because of their long dated nature, mean they are very difficult to evaluate.
* Facing repossession, mounting debts or mortgage arrears. A sale and rent back scheme can pay off debts without leaving home.
* Worried about property prices falling - By selling today customers can lock in any profits made from property increases.
* Want all the benefits of being a cash buyer of their next home without the hassle of moving into rented accommodation first.
If you want MPG to solution to equity release, contact us on 020-8732-3558 or go to www.mpginvestments.co.uk for more information.
For our help in this stressful time, please contact us now. |
| Author: Rebecca Coe |
| |
Author Bio:
Email Newsletters |
| This article can be searched using: real estate web sites, real estate agent web sites, real estate investor websites |
|
 |
|
