Retirement Freedom

18/10/11

Retirement Freedom

 

Equity Release to Assist Retirement Planning

 Home Benefits

There is a considerable amount of “unmortgaged equity” sitting in the properties of those that are retired, or nearing retirement due to property price rises over the last couple of decades.

Also, this age group may be getting (or may get) less than they hoped for from their savings, or pension, and with increasing longevity, along with the Government making it clear that the State will not be able to provide all-encompassing retirement funding, other options may need to be considered.

Where Equity Release Could Help

If you fall into this age group, then releasing equity from your home may deliver the additional income you need to meet bills, pay off debts, maintain your home, or simply achieve your retirement goals. Even if you do have enough in savings or a sizeable pension, it may deliver a way to provide financial support to your children and grandchildren, whilst you are still around to see them benefit from it.

With loans from around £10,000 and upwards, Equity Release may well offer options for those that may be keen to turn some (or all) of the equity in their property into cash.

 Consider the Alternatives

However, opting for an Equity Release plan is a major undertaking – and may require the input of other family members, as it can affect their future inheritance.

You should also consider if other financial routes are better for you.  For example, if you want to extract the full value of your property, you may need to sell up and consider moving to a cheaper home and release equity that way.

Options for You

There are a multitude of reasons why people will opt for Equity Release, such as to maintain their standard of living; home improvements; pay bills/clear debts; and mortgage repayment.  On top of this, there’s sure to be those that will also want money for the luxury items, such as a “once in a lifetime” holiday, or to help out their family.

There are two main types of Equity Release scheme:

Lifetime Mortgages & Home Reversion Plans 

To fully understand the benefits and pitfalls of Equity Release, you need to take advice from your financial adviser, your solicitor, possibly your accountant, and quite likely, involve members of your family too.  It's a pretty complex area, but one that we're familiar with so do get in touch to find out more.  So why not on + 44 1372 844344 or email:  .(JavaScript must be enabled to view this email address)

For Equity Release, we can be paid by commission or if you elect to pay us a fee for arranging finance, our fee will be 1% of the advance with a minimum of £750.00.  We only recommend home reversion schemes from members of Safe Home Income Plans (SHIP) and their code of practice includes the valuation “no negative equity” guarantee.  To understand the features and risks of a home reversion plan, ask for a personalised illustration.