If you have an equity release scheme you should watch for how it is protected. It should be one that is protected through guidelines formed by SHIP or the Safe Home Income Plans trade organization. This is used to help with allowing you to be able to retain financial freedom and without losing any benefits to your equity release program.
An important factor when it comes to SHIP standards is that a person who lives in a property will be allowed to live in that property for as long as that person wants to. In fact the owner of the scheme can live in the property that the scheme is for until the person dies.
In fact if you want to move to another property you will be able to move to another one according to SHIP guidelines. A plan that is protected by SHIP standards will be able to allow you to move to a new place without having to lose any money from your equity release scheme. It should be noted though that there are different guidelines used with regards to what can qualify for this equity release protection service. All qualifications will vary by lender.
Fair use of different payment options will also be allowed. Depending on the program you work with you will be able to get equity release payments at a schedule or through a lump sum.
In addition to this you will be able to qualify for a No Negative Equity Guarantee. This is where the money that has to be repaid can never be higher than the property’s actual value. With this you will not be at risk of losing a good amount of money in your plan.
SHIP guidelines are ones that are used by all groups that offer equity release schemes. This is so that consumers will be able to get more money out of what they have. In fact many major providers of equity release schemes, including Aviva and Prudential, work with all SHIP standards.
Protection that is provided through the Safe Home Income Plans organization is important to watch for. This protection works in that an organization that offers equity release schemes can protect its customers by allowing them to stay in their homes and keep from paying back more than what is needed. These rules are so valuable that many major equity release companies will work in accordance with SHIP protection standards.
