Releasing money from your home could give you a more comfortable retirement.
Many clients are asset rich and cash poor, and run the risk of a threadbare existence in retirement. Equity release is a way of unlocking a proportion of the value, or equity, you have in your home in exchange for tax-free cash; without having to move.
Equity release is an important decision, so we will work closely with you and your family, carefully discussing the pros and cons to find out whether it is right for you.
Freedom to spend the money as you choose
You are then free to use the money on almost anything you choose. There are many reasons for releasing equity from your home and here are just a few of them:
- To supplement your pension income to cover living expenses
- To carry out some home improvements
- To take that holiday of a lifetime
- To help your children onto the property ladder
- To settle a repayment mortgage or clear the balance on an interest-only mortgage
- To improve your standard of living
- To see your family enjoy their inheritance while you’re still here
- To pay off other outstanding debt and lower your monthly outgoings.
Please note that if you have an outstanding mortgage or any loans secured against your home, you will need to pay these off completely with any equity you release. The remaining cash is then yours to spend on almost anything you choose.
You no doubt feel that you have worked hard for your home so maybe now’s the time get your home to work hard for you.
Flexibility to release cash as and when you need it
You can choose to take your cash as a one off tax-free lump sum, or as smaller amounts over a number of years. This flexibility gives you more control of your finances in the longer term. Whether you have an outstanding mortgage you want to pay off or you want to have money available to draw on throughout your retirement, there are equity release schemes available to enable this.
Stay living in your home
When it comes to generating additional cash, many people feel they have no option but to sell their home and downsize to get the money they need. However, with equity release you can generate extra cash without having to leave your much-loved home. You will also not have to incur the cost and go through the upheaval of moving.
Equity release is a long term commitment. You can choose not to make any monthly repayments, your loan will be repaid when you die or move permanently into long term care. Until this happens you are free to stay in your home for as long as you choose. This may then reduce your monthly outgoings, providing you with more disposable income to enjoy your retirement. The interest will be rolled up and added to the loan amount.
Alternatively you can choose to take out a plan where you make interest repayments. This allows you to keep the value of your loan as low as possible.