However, you may choose to use the money for home improvements, private healthcare, the holiday of a lifetime, helping your family, or just to make sure you have that bit extra every day - releasing equity could be right for you. It allows you to unlock some of the cash tied up in your home, without having to move house.
All plans allow you to stay in your home and many have no monthly repayments to make. The equity release company receives their return from the sale of your home when you die or have to go into long-term care, this means your estate is reduced and in some cases receives nothing from the sale of your home. Of course, you have the comfort of knowing that you can choose from many products that guarantee your estate will never have to pay more than your house sells for. These products are part of the Safe Home Income Plans (SHIP) scheme.
What's more, recent regulation means that you have the reassurance of knowing that many plans are protected by rules set out by the Financial Services Authority. I can explain to you which products give you this protection and how it could benefit you.
If you would like to find out how you could enhance your retirement, I would be happy to help with any additional information or to answer any questions you might have.
You may still be unsure whether it is something that could work for you. Deciding whether to release equity from your home is a big decision that you should think about carefully. There are many things to consider; such as any effect it may have to your tax status, or your entitlement to some means tested benefits. Releasing equity also means your estate would receive less - and depending on how much you release - it could receive nothing from the sale of your home. I can advise you on the impact of your personal circumstances and assist you with deciding whether this is an appropriate way for you to improve your current financial situation or whether there are alternative options. Should you decide that this is something you would like to progress I can also offer advice on the best plan for you.
Call us now on 01484 864017 for more information.
Initial discussion on the advantages and disadvantages of Lifetime mortgages is free with no obligation to proceed. Thereafter there is a consultation fee of £100 and a further fee of 1.5% of the amount released, subject to a minimum of £600, upon completion.
Your home may be repossessed if you do not keep up repayments on your mortgage.
This is a lifetime mortgage. To understand the features and risks please ask for a personalised illustration.
Liz Gill CeMAP, CeRER
Lifetime Mortgage Specialist