See How Much Tax-Free Cash You Could Release from Your Home.
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How does Equity Release Work?
Well, the huge benefit with Equity Release is that it could be used in a variety of ways. This tax-free money can be spent however you wish. There are limitations on how this money can be spent. You have the option to access it as one huge tax-free lump sum or instalments.
The most popular type of Equity Release is a Lifetime Mortgage. With this product, it is paid off when you pass away or when you need to move out of your property into long-term care.
Things To Consider?
Of course, just like with any financial product, there are always things you need to consider before going ahead and making the purchase. When financial products are involved, it is always recommended that you seek independent advice from an FCA Authorised Advisor.
It is worth considering that there will be less to leave in your estate once you die if you take money out of your property now.
It is also advisable to check whether your entitlement to state benefits could be affected, as reaching a certain threshold will have an impact – you can do this by speaking with an advisor before accessing a product.
There is no one size fits all solution, which means every situation is different and varies massively depending on your age, how much you want to release and the value of your home. By speaking with an advisor, you will be able to discuss any potential risks involved with releasing equity, which will enable you to make the right decision.
When Circumstances Change, What Happens Next?
Sometimes, events occur that we can’t predict, such as needing to move to a new house to be closer to family. Your Equity Release plan could potentially be portable – so providing the new property is an acceptable option to the lender you choose, you will be able to move your Lifetime Mortgage from one property to another.
But like with any financial product, it is always sensible to check first.
Could You Benefit from Equity Release?
To qualify for Equity Release, you must:
Your property must be…
To get started with Equity Release, the first step is to check exactly how much you can access, which you can do this with a free calculator tool. These tools are super simple and will only require a few details, such as the address of the property, its value and your contact details.
Equity Release – What Is It Used For?
Firstly, it’s important to realise that Equity Release could be used for a spectrum of things, which is why it is such a popular product. Whether that is helping you to access cash to achieve the lifestyle you have in mind, allowing you to support your children with buying their first house or renovating the one you currently own – the opportunities are in abundance.
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According to market reports, in 2022, 93,421 homeowners over the age of 55 used Equity Release, releasing more than £6.2 billion from their homes* – and the signs for continued growth are looking promising. Experts state that 2022 was a milestone year for home finance products and research has proven that more people are now opting to use their property wealth to fund important lifestyle choices.
It’s certainly not difficult to see why Equity Release is increasing at a dramatic rate either. Whilst retirement income such as pensions are supposed to help those in their later years live comfortably, it is unfortunately just not the case for many.
Equity Release could be a beneficial option that helps those in later life to live securely. This type of product enables over 55s to live their life exactly how they want, which is a welcome change from scrimping and saving to cover bills and bare essentials.
Simply put, Equity Release could enable individuals to top up their retirement funds without adding years to their careers, selling property or even downsizing. For most, a tax-free disposable income is the dream when it comes to retirement living and Equity Release could allow people to do just that.
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