Equity release: unlock money from your home for a more comfortable retirement

Equity release is typically available to people who are over the age of 55 and have their own home with a significant amount of equity, but don’t have enough money or income for their needs. By releasing equity in the form of a lifetime mortgage or home reversion plan, it enables the individual(s) to remain in their home and raise money for things such as:

• Generate a capital lump sum
• Provide an additional income
• Give lifetime gifts to relatives
• Make home improvements
• Buy a holiday home
• Pay for long-term care

Where equity release is a suitable solution and you take out a lifetime mortgage or home reversion plan, the money does not usually need to be paid back or the home sold until the last remaining borrower dies or moves into care. However, this may not be the case; for example, if you make repayments, you will preserve as much of the inheritable estate as possible. 

Is equity release right for me?

While there are benefits for people in this situation, equity release isn’t for everyone and the benefits need to be weighed up alongside drawbacks, such as equity release can:

• Be expensive 
• Affect your ability to claim certain state benefits and your personal tax position.
• Have an impact on local authority grants / other grants (i.e. for essential home improvements)
• Potentially erode any inheritance passed down to loved ones

Also, there may be alternative options available to you that need to be explored before taking the equity release route, such as consideration of a conventional mortgage as an alternative, moving to a smaller home, using any savings or investments, or potentially selling the home and moving into rented accommodation or living with children or other relatives. 

Don’t worry, as we can help you understand all the features and drawbacks so you can make a fully informed decision.

Expert financial advice about what is right for you

As financial advisers with the required equity release qualification and training, we can assess your individual circumstances and needs, and then give you expert advice on the right course of action for you. The benefits need to outweigh the drawbacks to ensure equity release is more suitable than alternative methods of raising funds.

It’s often said that you can’t buy peace of mind; however that’s exactly what our financial service does, as you can rest assured knowing you have found the right solution for you.

It is advised that customers seek independent legal advice before entering into a legally binding equity release contract.