Equity release is a way to unlock money from your home if you don’t want to move but do want to use your capital differently to support your life or your family. You won’t have to pay back until your property is sold, you die or you move into long-term care and it can be a good way to boost your retirement income. Equity release won’t suit everybody – or every situation and it’s important to speak to an experienced financial adviser about the risks involved.
Every year thousands of people are releasing tax-free cash from their homes to spend in a variety of ways – repaying existing mortgages, home improvements, treating family members or just making life more comfortable.
What is equity release?
Equity release allows older homeowners to access some of the value tied up in their homes. You can take the money as a cash lump sum or in several smaller amounts. People often choose this option to supplement their retirement income, make home improvements or help children or grandchildren get onto the property ladder.
How can I qualify for equity release?
You should be eligible for equity release if you meet the following criteria:
- You’re over 55;
- You’re a UK homeowner;
- Your property is in reasonable condition and is worth more than £70,000; and
- You have little to no mortgage left on your property.
It may not be a suitable option if you have dependants living in the property.
The main advantage of equity release is that it gives you money to spend now rather than leaving it tied up in your property. However, it’s important to remember that it often doesn’t pay you the full market value for your home. It is also likely to reduce the amount of inheritance you’ll leave after you die. Our advisers can help you decide whether equity release is right for you and help you find the best deals if you choose to go down this route. They will help you make the decision if equity release could help improve your retirement. They will provide all the facts, figures and information you will need to reach a decision.
