For many elderly people the rising cost of living has eroded the purchasing power of their pension income and often the majority of their capital is represented by their home.
Equity Release is a term given to schemes that help homeowners release some of the capital tied up in their home without the need to take out a traditional mortgage
or move.
Equity Release schemes allow you to choose how much equity to release, subject to a maximum which is dependent upon your age and property value. The money can be used for whatever purpose you want, whether that is to replace your car, do home improvements or provide extra income, the choice is yours.
Equity Release, unlike a traditional mortgage, offers the option of making no repayments until you or if later, your spouse, dies or needs to move into Long Term Care at which point the house is then sold, the loan repaid and any balance paid to your estate. Whilst this will inevitably reduce the amount of equity which will be left for you or your beneficiaries to inherit, by providing either a lump sum, extra income or both, it can often make the difference between retirement being a struggle and being
more enjoyable.
