Why you should be thinking about Equity Release
Your home can be your most valuable possession and investment, but many people are ‘asset rich and cash poor’- living in a valuable property, with little or no mortgage, but getting by on a relatively low income and no cash reserves.
Equity Release is a means of getting hold of a cash lump sum to pay for repairs or adaptations to your home, or you may want to raise some cash to help your children or grandchildren. You may still want to enjoy your annual holidays or invest in property overseas. Turning some of the value of your home into cash can help pay for any of these things.
If you have been retired for some time you may find that your income and savings do not meet all your financial needs. Your day-to-day living costs may have gone up while your income has stayed unchanged, or gone down. Equity Release may provide a solution.
Qualifying for an equity release scheme
The main condition relates to your age - different companies offering these schemes have different minimum ages. The qualifying age for some schemes is 55, but many require that you are older - 65 or 70.
You need to own your own home and will normally have paid off any previous mortgage. (Sometimes a small outstanding mortgage may be cleared as part of one of these schemes.)
The property may have to be worth a minimum amount - the minimum property value varies from scheme to scheme but is usually at least £80,000. The property will also need to be in a reasonable state of repair.
Hanson Wealth are an independent company and will search the whole market for the best product to meet your needs.
We can offer expert, unbiased and professional advice on all areas of financial planning. Our site includes information pages, calculators, online quotes and relevant links to government sites.
