While retirement generally brings with it the time to enjoy hobbies, travel and just a relaxed life in general, more often than not, pension income is not sufficient to finance these long anticipated dreams.
Equity release offers a solution to the cash shortages of pensions that are struggling to keep up with ever rising food, travel and utility costs. It is no secret that government financial aid for people at, or approaching, pensionable age, is quickly swallowed up by more expensive essentials.
Equity release allows you to benefit from the value of your home, without you having to sell or move out of it.
Equity release can provide you with:
Cash
An income
A combination of a cash sum and an income
It is generally accepted that property is a good investment vehicle, over time showing a tidy return on initial investment. For this reason, it is not uncommon for a homeowner's property to be their single most significant asset.
Equity release may offer an opportunity for you to release some, or all, of the equity in your property, with which you can realise your dreams.
Any cash generated by an equity release plan is tax-free and, once the equity release is finalised, you are free to spend your money on anything you wish.
Equity release cash could be used for:
Buying a holiday home
Going on the holiday of a lifetime
Home improvements/extension
Buying a new car, motor home or caravan
Paying off debts
Cash gifts to children or grandchildren
Eligibility for equity release schemes will be dependent upon certain conditions:
Although some schemes only require you to be over 55 years of age, you must usually be at least 60 years old. If married, your spouse would need to meet this minimum age requirement
You must own your home or have little or no mortgage on it
You must reside in England, Scotland or Wales
You have more than just one option too, as there are two main types of equity release scheme:
Home Reversion - where you sell all, or part, of your home to a specialist investment company or individual
Lifetime Mortgage - where you take out a loan, secured against your home
Nations Finance UK
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