- Are you over 60 years of age or do you have elderly parents that could benefit from releasing capital from their home? Equity release might improve your – or their – retirement lifestyle.
- Are you worried about insufficient savings for your retirement?
- Are you worried about your inheritance tax position and would like to look at possible ways of reducing this?
- Would you (or would older relatives) like to benefit from supplementing pension income to improve lifestyle by releasing equity, without the need to move and ‘downsize’.
- Or perhaps your children are in their 30s or 40s and are struggling to get onto – or move up – the housing ladder and you would like to help them?
- Are you looking for ways to fund ‘in home’ care fees by releasing capital from your property or have elderly parents that need advice in this area?
2014 saw the largest amount of equity release lending ever recorded – £1.4 billion – according to the Equity Release Council. This is the largest annual figure since records began in 1992, exceeding the previous high (£1.21bn in 2007) by 14%.
Nigel Waterson, Chairman of The Equity Release Council, comments:
“People’s property is very often their biggest and most secure financial asset, with a far greater return on their original investment.
“Particularly if they bought their homes some time ago, many will have a large amount of equity tied up in their property that can relieve the pressure on their retirement income and help with additional expenses. In many cases, equity release can offer retirees an alternative to selling their property – one that preserves their domestic comfort as well as their attachment to the place they call home.
“Whether choosing a lump sum or regular monthly payments, equity release customers can enjoy the relief of an extra source of retirement income, safe in the knowledge they are free to remain in their homes for the rest of their lives, if they choose to, and will never owe more than the property is worth.”
Note that Equity Release is usually only offered to clients after other solutions are eliminated, for example:
- Re-mortgage. Sometimes this is not the right solution because the client is either too old or does not want to have to pay the monthly repayments on a mortgage, something you don’t have to do with an Equity Release product.
- Moving. We always make sure that the clients have considered downsizing first – not an option if they wish to stay in their current home because of its location.
- Bank loans. Not normally a good solution due to the relatively high monthly cost.
- Borrowing from family. Not usually possible.
- Using existing savings.
There are several different equity release schemes available on the market so you need to seek professional financial advice before deciding whether Equity Release is right for you. Equity release may not be suitable for your needs. Please obtain specialist independent advice and always ask for an Illustration.