The word ‘retirement’ can conjure up different emotions for different people. For some it brings the opportunity of more free time to do the things that they enjoy, for others the amount of free time comes with some anxieties.
Whichever side of the fence you’re on, there will be one common link as you enter into retirement - the reduced amount of funds that you will have available to you.
As your funds will more than likely be reduced in retirement it can make you re-evaluate what’s important to you in life and think differently about what you choose to spend your hard earned cash on. Whether that’s staying in the home you love, relocating to your dream property, updating your home, going on dream holidays or giving gifts to your loved ones, retirement can often be a time for reflecting on what’s important to you. Research from Age Partnership shows the different reasons that people have released tax-free cash from their homes for their retirement years. Whilst repaying their mortgage comes out as the single biggest objective, it is worth noting that it’s a condition of equity release that you must pay off any standard mortgage. What the data does show is that people are keen to release money from their homes to carry out the home improvements that they now have the time to enjoy the benefit of.
And helping out family or friends is up there, with 10% of people choosing to help family members onto the property ladder, pay for weddings or fund grandchildren through university.
Whatever the reason for freeing up extra funds, it’s clear that equity release provides a range of options, and with a lifetime mortgage, the most popular type of equity release for over 55s you also continue to own your home.
Qualified equity release Advisors can search the whole of the market to find the most suitable plan for your specific needs and to help you meet your objectives for the money.
Advisors from companies like us at Age Partnership can provide a free, no obligation equity release quotation. During the quotation the Advisors will tell you everything you need to know about equity release including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.
At Age Partnership we provide initial advice for free and without obligation. Only if you choose to proceed and your case completes would a fee of 1.95% of the amount released be payable (minimum £1,495).
Equity release requires paying off any outstanding mortgage.
The benefits of a lifetime mortgage mean that you don’t have to make any monthly repayments, as the equity released plus the interest accrued is repaid when you die, or move into long-term care. With equity release providing access to a tax-free lump sum of cash for people to enjoy in their retirement years, it’s little wonder that UK homeowners released a record-breaking £3billion in property equity during 2017. Plans from the whole of the market will be considered.
Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property. To understand the features and risks, ask for a personalised illustration.