Life Tenants Free Valuations
If you become a life tenant you will be allowed to stay in your home until you die. You will not have to pay any monthly rent or mortgage. This is a popular decision to take among many retired homeowners who want to reduce their monthly outgoings. Most of these tenancies occur when a homeowner either takes an equity release plan out on their home.
Equity Release Plans In essence an equity release plan works by selling you home for a percentage of it’s true value. For example your house has a value of £100,000. A company will offer you a loan on your home that does not need to be repaid until you die. Upon your death the company will sell your property and keep all of the proceeds
Receiving A Lump Sum For Your Property
You may receive a lump sum of £35,000 on a house worth £100,000 but this depends on your age. The older you are the more attractive the proposition is for the loan company because they know your property will become vacant sooner rather than later. It is only when your property becomes vacant that they are likely to sell the property. Of course they could sell the property whilst you are still living there but whatever happens your tenancy will always be in place so the house would be sold with a life tenant.
This is a simple explanation as there are many different types of equity release schemes out there but at the end of the day they will offer you a small percentage of the value of your home now and you don’t need to worry about repaying it. There are no monthly interest payments to make as the loan interest will be rolled over. If you are considering the sale of your life tenancy we would love to hear from you. We can answer any questions that you may have concerning all types of tenancies.