Drawdown Plans Scheme
In executing its mandate to its clients, Expert Equity Release Company in the United Kingdom advises that there is in addition to the basic lifetime mortgage scheme, a drawdown plans scheme. This scheme is similar to the basic lifetime mortgage scheme but differs in the sense that you will not get the equity release money in lump sum. Instead, the property equity release will happen in a drawn down arrangement where you will have to decide the maximum amount of money you want, the particular time you want it or the interval at which you will be getting it.
In this sense therefore you one will need expert equity release information in deciding whether this arrangement or scheme is suitable for you, the factors you need to consider when deciding on the interval to be used and the amount of money you can set for this particular arrangement.
This drawdown plan scheme is therefore more flexible than the basic mortgage scheme in the sense that you will have the opportunity to decide the amount of equity you want to release, when and at what interval. The particular advice you will get from this advisory company is whether this will constitute the best equity release arrangement suitable for your situation.
Like the basic lifetime mortgage release scheme, this drawdown plan is only available to persons of and above the legal age of 55 years in the United Kingdom. You do not have to worry about repayment as it will not happen in your lifetime. Better still; the equity released is tax free as you still retain the ownership of your premises, also benefiting from the rise of the value of this property you have used as security. This is without mentioning that you still occupy the property until you die or move permanently to other quarters.
One of the advantages of using this scheme is the allowance that will ensure that you decide the amount of money from the available value that you want to cash at a particular time. It is also possible to have an arrangement for you to be receiving a prior stipulated amount of cash at a monthly basis. This is entirely upon the individual to decide and utilize.
In this arrangement, unlike in the basic lifetime scheme, the interest accrued only pertains to the amount of money drawn and not the full value of the equity to be released. This therefore points to the possibility that this interest will be less than it would have been were it to be the basic lifetime arrangement used.
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