The last few months have seen many people furloughed or sadly being made redundant and therefore struggling financially. As a result, equity release has risen in popularity as an option to provide financial relief.
What is Equity Release? The equity you hold in your property is the difference between the property value and the amount of debt you have secured against the property. An equity release plan will allow you to access some of this equity.
How does it work? An equity release provider will provide you with either a lump sum or an income in exchange for part of the value of your home. This is achieved either using a type of mortgage, or by selling that portion of your home on the condition that you can continue to live there as long as you wish.
The minimum age for applying for an equity release plan is 55 and the debt only needs to be repaid from the sale of the property either on death of the last applicant, or the last applicant entering a care home.
Why release equity? You can use the funds released from an equity release arrangement for a variety of different reasons and could include:
• Topping up your income • Helping children and grandchildren • Renovating or refurbishing your property • Buying a second property • Paying for holidays • Adapting the home • Funding hobbies and interests
Equity release is not for everyone Make sure you speak to an independent financial adviser or mortgage broker specialising in equity release to receive unbiased advice on whether it really is the best option for you and to ensure you are protected from pitfalls like negative equity.
What to do next Get in touch, call 01225 308333 or email Sean.McCabe@mogersdrewett.com, our advisers all have the required equity release qualifications and are accredited by The Society of Later Life Advisers.