Who can benefit from equity release schemes?
Tens of thousands of people are already enjoying the benefits of equity release and the freedom it offers.
But equity release is not suitable for everyone and it is very important to talk to an independent equity release specialist before making a decision as to whether to proceed or not. If you are aged 55 years or over and a homeowner then you may qualify for an equity release scheme.
The amount you can unlock depends on the age of the younger applicant and the value of your home.
This amount increases as you get older. Some lenders will also take health issues into account to maximise the amount you may be able to release.
If you already have an outstanding mortgage balance, or secured loan, or other charges against your property, then it will be a condition of the offer that these are repaid.
This has been a benefit to a number of retirees who have come to the end of their interest only mortgage and have no means to repay the mortgage and do not want to move home.
And to retirees that have seen a drop in income since retiring and have struggled with mortgage commitments and increasing living costs. How can the tax-free money be spent? The money you release can be spent in any way that you wish.
Some popular reasons for unlocking the cash tied up in homes are as follows:
- Buy a new car.
- Home improvements such as, conservatory, new kitchen, landscaping, extensions, improving the home for health issues.
- Pay off existing mortgage or other credit commitments to reduce your monthly outgoings and free up cash.
- Help support your family. Enjoy seeing your children of grandchildren enjoy their inheritance.
- There are inheritance tax advantages.