Equity Release Scheme Reforms to Help with Care
Improving care for Britain’s aging population is currently taking precedent with the Government and this could lead to changes in equity release schemes.
A report by the Cass Business School for the City of London Corporation suggested that new measures should be introduced to help improve funding for care in Britain and equity release schemes were cited as one of these.
The equity release market is once again growing after suffering during the early quarters in 2009 and is now being acknowledged as a leading source of finance in retirement for homeowners.
Equity Release Public-Private Partnerships to Boost the Market
The lord mayor of London, Ian Luder, speaking in The MJ – Local Government media magazine – suggested that top-up insurance and bonds for people with no assets could be an option as could changes to the equity release market.
With an additional £29billion added to the housing wealth market since June 2008 – according to the Nationwide – homeowners releasing equity could become a viable solution to help support care for the elderly.
Mr. Luder told The MJ: “The question of long-term care is something that needs to be addressed now by all relevant parties – households, industry and government.”
An equity release scheme – of which a lifetime mortgage remains the most popular – has the potential to unlock a lump sum or regular payments to supplement retirement income. Homeowner’s have the option of releasing these additional funds for whatever means they deem necessary and sufficient care may be one such reason.
The Department of Health is also contemplating possible changes in the future to improve fund for care of the elderly.
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