seniormoney
 
 

Home Equity Release

Senior citizens often own a valuable property bought many years ago. They may find themselves in a position where they wish to remain in their home but find it difficult to make ends meet.
Their income may have become inadequate to maintain their lifestyle, cover their medical and other bills plus have something left for a rainy day.
One possible solution is to consider entering into an agreement called “Home Equity Release” with a financial institution.
Home Equity Release enables them to release some of the value locked up in their home and use this to maintain their lifestyle.
Home equity release is the process whereby homeowners dispose of their property in advance but retain full residential and other rights for an agreed period, normally until death or a certain age.
In other words, they enter into an agreement with a third party to sell their property for an agreed price and are paid for the property without having to vacate the premises.

Conditions apply and extreme caution is advised when you weigh the pros and cons.
We strongly suggest that you consult with your lawyer before committing yourself to such a scheme.
There is an organisation called South African Home Equity Release Protection Association (SAHERPA) and you can approach them for further information and assistance.
Visit their website at: http://www.saherpa.org.za/