The financial solution for your future – equity release
Equity release is fast becoming a financial solution that many over-55s are choosing to factor into their later life financial plans.
What was once considered an involuntary decision, is now a freeing one – helping fund a magnitude of possibilities.
Equity release involves accessing a percentage of the ‘equity’ from your home as a lump sum of tax-free cash. The product has undergone a resurgence over recent years and is now a fully regulated solution available to those aged 55 or over, who own their own home. With leading high street names such as Nationwide, SunLife and Yorkshire Building Society, now offer equity release.
Low interest rates and rising property prices, albeit at a slower rate than five years ago for many parts of the country, have ensured that those who are releasing equity from their home are able to release more money at a lower cost than previously available. This is a huge benefit to those seeking to help their children get onto the property ladder, pay for that dream holiday, home improvements or purchase a holiday home – the choices are endless.
According to the Equity Release Council, the total amount of equity released by over-55’s reached £3.06bn in 2017, with the vast percentage of people who chose to release equity opting for a lifetime mortgage plan. One of the biggest benefits of a lifetime mortgage is that it does not affect the ownership of your home – participants continue to own 100% of their home as well as stay in the property they love, if they chose to. Whatsmore, there are no monthly payments required, as the money released plus interest accrued is repaid upon death or moving into long term care.
Equity release is only available through an independent qualified advisor. This means that equity release solutions are fully tailored to the individual. Those who are considering the solution can be sure that they will receive a specific plan that is accurate to their individual circumstances and objectives. The advisor will also discuss the fees involved, providing a balanced view of everything involved in equity release, explaining that any money released will impact on the size of the estate and any entitlement to current or future means-tested benefits.
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