Many people have a lovely home, yet struggle to make ends meet. Others dream of a once-in-a-lifetime opportunity, but lack the cash funds to make it possible.
Your home is valuable asset – so it could make sense to use some of the funds tied up in your property to help improve your quality of life, or fulfil your ambitions.
An equity release scheme allows you to convert the value of your home into cash, while you can continue to live in the home you love.
There are typically two options:
- Lifetime mortgage. You continue to own your property, but take out a loan against its value, and receive a cash sum. This loan, plus interest, is repaid when your property is sold.
- Home reversion. You sell your property to a reversion company, receive a cash sum, and continue to live rent-free in your home.
Equity release schemes are sometimes met with hesitation – and it’s right to think carefully because there are long-term implications for your decision. It’s important to be aware, for example, that in an equity release scheme you may not receive the full market value for your property.
Our independent equity release advisers can guide you and help you make an informed decision. There may be other ways you could access funds before considering equity release, and we can help you look at all your options objectively, and without any pressure.
Anthony Trueman is a member of the Equity Release Council