There are two main determinants of how much you would get from the equity of your house during your retirement period.
These are age and health. You need to be at least 65 years of age to be able to convert your equity into cash.
The lenders consider the number of years they would have to wait before they can get back the pay based on current life spans.
But, you would be more advantaged if you have a health condition that is threatening your life.
As much as death is a sensitive issue that not many want to discuss, but it is inevitable and at old age all you have left is your dying day. You should make these last days of your life as comfortable and stress free as possible.
One way would be when you release equity from your house. You would not need the house at your death!
There are two main ways you would release this equity. Unfortunately, there is no standardization in the schemes so you should do your own research on the method that would give you maximum returns. The cash you would receive is tax and interest free.
You need to select a method that would allow you know how much you would leave as inheritance.
Your children are your loved ones and they are your inheritance from God. You should consider leaving them an inheritance too. By selecting lifetime mortgage option, you shall have made the best choice.
This option is known as roll up mortgage and considers the value of the house. The lender will charge you interest on the percentage you borrow from them but this interest is compounded and rolled up in the original loan.
It is only upon your death that the house is sold and the lender is paid off his loan and interest and the rest is handed over to your loved ones. There is no way the debt can grow larger than your house so that you are forced out, your house is a fixed asset that appreciates and this is something you must know.