For many people in the current financial climate, the cost of living is squeezing the amount of cash available to spend.
Housing costs have soared along with everyday living expenses including food, fuel and travel.
For homeowners aged 55 and over, this may lead to questions about equity release.
- Is it right for me?
- How much can I release with equity release?
- Do I qualify for equity release?
- Can I still leave an inheritance if I release equity?
- What happens to Inheritance Tax (IHT) when you release equity from your home?
- We answer some of the most frequently asked questions here.
Is equity release the right answer for me?
Although equity release is not right for everyone, it is an option with many variations to suit a wide range of individual needs. Indeed, in many cases it is an option that should not be ignored. You might decide to consider equity release alongside other options including selling your home to downsize, a loan or sale of other assets.
With equity release you can release some of the value in your home without having to sell it. Most people who choose equity release do this via a Lifetime Mortgage. You do not have to repay the loan until you die or move into long-term care.
If you do want to consider equity release, the good news is that you must take advice from a qualified equity release adviser. This is good because they will ensure that you are fully informed about the benefits and the costs involved. They will also help you to explore the wide range of options available and there are many to consider. For example, once you find out how much you are able to release, you might decide to take it as a lump sum or you might prefer a drawdown facility. You can also opt for a combination.
There are also many different ways to pay the interest on your loan. Crucially, there is also a “no negative equity guarantee” which means that you cannot owe more than your home is worth. Your adviser will not recommend equity release if it is not suitable for you so it is worth a consultation to investigate your options.
We can help you decide if equity release is a suitable option
The wide range of choices may sound overwhelming but that is why expert advice is so important. You will discuss your finances and your future plans in great detail with your adviser to find a deal that suits your needs.
You may also decide to involve family members in your consultation process if you would like to gift money to loved ones from the equity you release or if you would like to ring-fence money for an inheritance.
If you decide to release equity it is advisable to review your Will and Estate Planning. At Access Equity Release we can refer you to specialists.
When you first consider equity release, you may have more questions than answers. However, whether or not the answer turns out to be equity release, your consultation with an equity release adviser will leave you in a much better informed position about your financial options and the possibilities that later life lending can offer.
Why not contact our friendly team? We would love to answer your questions about equity release.