Equity Release Matters
British homeowners over the age of 65 now own property wealth of £873.77 billion outright with pensioners across almost all of the UK benefiting from increases in the value of their homes*
Many people choose to leave this equity tied up in their property for much of their lives. However, an increasing number of people are now choosing to release some of this equity and turn it into cash. Some of this may be to supplement income in retirement when pensions or other sources of income are no longer meeting expenditure, let alone keeping pace with inflation and the increasing costs of living.
Equity Release is generally available to homeowners over the age of 55 who would like to free up some of the capital stored up in their property. This can provide a lump sum payment or smaller regular withdrawals or both. This money is available for the borrower to use as they wish.
Equity Release can also provide a useful option when considering funding for Long Term Care, especially for care in your own home.
Some other reasons for wanting to release some cash from your property may be: -
- Paying off an existing mortgage or secured loan
- Repay debts
- Enhancing retirement planning
- Improving lifestyle
- Buying a new car or paying for a holiday
- Home improvements
- Helping out family or loved ones
How much can be released is dependent on your age and the value of your property. Some providers may be able to offer larger sums to those with certain past or present medical conditions, or even those with “lifestyle factors” such as a smoking habit. It is important that these are highlighted, even if they do not seem important, because it could make a difference to the equity release sum available to you.
Further generic information regarding Equity Release can be found on the following pages but, as always, if you have any questions or would like to discuss your own options in greater detail, please give us a ring on 01992 667417.
Alternatively please complete our Enquiry Form and we will contact you using the details provided.
* Source: *Key Retirement’s Pensioner Property Index 2015 tracks the amount of equity held in property by people over 65 years old in Great Britain. Figures are based on analysis of data from the ONS Family Spending Report (2014), the Land Registry House Price Index, Registers of Scotland House Price Statistics and ICM (2014) and Key Retirement’s UK Equity Release Market Monitor. |
