Is Equity Release A Good Idea

Top 3 Hidden Benefits of Equity Release You Must Know

With equity release increasing in popularity, you can now unlock the cash value of your house minus selling or downsizing to a smaller, low-cost property. Today, in the UK, a retiree takes out an equity release plan every 12 minutes.

Get the Retirement of a Lifetime

In the UK, life expectancy increased from 74 years (in 1980) to 81 years (currently). Thus, you’re likely to live longer into your retirement! By releasing your equity, you get a tax-free cash injection to top up your pension.

There are many benefits in releasing equity from your home to supplement a comfortable retirement.

The Top 3 Equity Release Benefits

Equity release schemes have become the most viable way to access the monetary value of your property. You can enjoy this equity and maintain ownership of your property.

There are two flexible means of achieving:

You can take out a lifetime mortgage by getting a secured property-based loan. And you can get a home reversion plan, where you sell a share of your house to an equity release company.

It gets better!

You can ring-fence a portion of your home’s value to ensure an inheritance for your beneficiaries.

That’s not all.

They also consider your state of health. You can qualify for an enhanced lifetime mortgage if you have a severe health condition.

The service comes with a “no negative equity guarantee”. After your property gets sold, all necessary fees get paid, even if the amount left isn’t enough to repay an outstanding loan to your provider. These are the Equity Release Council Standards.

Are You Still Wondering If An Equity Release Is A Good Thing?

There’s much more to benefit from taking out equity release, making it an ideal choice for you if you’re above 55 years, and own your home.

Including:

Benefit #1. You Can Stay in Your House.

The American Psychological Association (APA) says selling your home to shift to an unfamiliar place can be emotionally and physically draining. It’s no wonder then that getting to stay in your beloved family home is one sole benefit of an equity release scheme.

And that’s one side of the story.

There are costs involved in shifting: solicitors’ charges, stamp duty, removal costs. Also, there is the emotional price of uprooting from a place you’ve spent most of your life building your family and creating memories with your neighbours and friends.

By releasing equity, you’ll be able to keep your freedom and live in your family house until you move into permanent care or die. You’ve got the right to move to another property subject to the new property being acceptable to your service provider as security for your standing equity release plan.

If you have people to pass your assets on to, equity release means less inheritance for them.

Benefit #2. You Get to Continue Living a Life of Luxury.

Unlike other financial products that demand you to declare how the money is to get spent, equity release allows you to enjoy your money.

You’ll still get the right to remain in your property for life or until you move to long-term care. You may move to a new property provided that it’s of equal value and meets the provider’s requirements.

But wait, there’s another way you can utilise the funds.

Equity release presents you the opportunity to gift an inheritance to your children now rather than later. Or, you may not want to leave anything or leave your entire estate to a charity.

You can enjoy your money right now.

Benefit #3. Protection of Your Estate & Beneficiaries

Equity permits you to put particular safeguards in place to secure your estate and family’s financial stability. Precautions include the no negative equity guarantee, ensuring that any equity release scheme adheres to Safe Home Income Plan (SHIP) regulations.

The guarantee on no negative equity ensures that your beneficiaries don’t incur any debt above the property market value once you’ve passed on or moved into long-term care.

Equity release may be one of the smartest decisions you’ll ever make. And with all the benefits you’re bound to get, your retirement can become the golden age of your life.

Is Equity Release Good or Bad?

Be sure to contact a financial advisor if you need more information on equity release and other plans. All advisers regarding equity release plans must have a specialist qualification and be registered with the equity release council.

You can also chat with an independent adviser for free!