Double Rental Equity Release enables you to access your home’s equity (the market value). It enables you to have a second stream of income if you have rented your home. It is a favorable time for property owners to reinvest their home equity release and earn a guaranteed second income. Double Rental can help the older population to get a fixed income for the rest of their life. As, the inflation in the market has caused a rise in the price of necessities which is not affordable to the old, retired, and jobless population due to their lack of income. Therefore, Double Rental - Equity Release is a helping hand for these people.
The Mechanism of Double Rental – Equity Release is shown below.
• Loan backed by asset at LTV of 60-65% and less (means 40-45% paid). This means paying the consumer asset
• The remaining will be paid by investors for a fixed period on a fixed EMI rate, i.e., (interest rate + 100 bps) For instance, 6% for periods of 6, 12, 18, 24, & 36 months
• The investment fund will be used to settle the loan. The prorated ownership will be allocated for the period and the previous single owner will pay the rental/interest for the period agreed.
• Both clients will benefit from this process, one will generate income and the other will have a locked period of not paying the principal.
• On maturity, the first owner will have to pay back the investor. In case of a breach, the property will be sold, and investor money will be paid off or any mutual agreement.
No comments:
Post a Comment