Equity Release Code Of Practice
There are many equity release plans available if one chooses to mortgage the house for a lump sum of cash to his old age needs. The lump sum can be prognosticated using an equity release calculator. All these plans should follow the regulations set by the Safe Home Income Plans (SHIP) Code of Practice.
There is a common misconception that equity release UK offers plans that takes away the ownership of a part or whole of the home. It is not true. More than 95% of the clients of today take up the plan life time mortgage or drawdown life time mortgage. In these plans a portion of the property is mortgaged while the ownership of the house remains with the client. This would mean that the benefit of any value increase of the property belongs to the client itself.
It is mandatory that all plans should obey the regulations of SHIP organization. All these plans are ‘portable,’ i.e. the client is allowed to move home and yet he can continue his equity release plans.