The short answer to this, is yes.
If you are no longer a full-time UK resident it is still possible to apply for equity release if you own a property in the UK. Equity release is designed to unlock cash in your primary residence which means you need to live in that home for a minimum of six months a year.
This can be very appealing for people who might need to raise cash to fund a move abroad and perhaps buy a new property in that location. As stated above you will need to split your time 50-50 between the UK and the second country but we’re sure the thought of winter in a warmer climate is very appealing for your retirement years!
What about Buy-To-Let
If you own a buy-to-let property this could be another option for freeing up cash for your life abroad. Buy-to-let equity release products are harder to find and the criteria can be more stringent than for normal equity release circumstances. If you’re a landlord with a number of properties you might even be able to release equity across all of them and find a scheme based on the combined equity you hold. The best thing to do is to discuss your plans and financial situation with a qualified equity release advisor who will be able to tell you which products you’re eligible for.
What am I eligible for?
The main product you will be eligible for is the rental property equivalent of a lifetime mortgage. You’ll be able to take out cash either in a lump sum or in instalments but the maximum amount you can potentially release is 44% of the value of the property. Other criteria include the stipulation that you are over 55, have tenants in your property and have enough equity to release.
None of these decisions should be taken lightly and we recommend you speak to your family before confirming anything. They will be the ones dealing with property sales and loan repayments in the future so they will need to be aware of your plans.
:: Use our Equity Release Calculator to work out how much cash you could release.
For more information about why people choose to release equity, click here
It is important to take expert advice on equity release before deciding whether it is right for you. Contact us to find out more from one of our highly trained advisors.
