Over-55s in Worthing are unlocking the value in their home and boosting their retirement plans, with a recognised way of freeing up their home’s equity.
Equity release is becoming an increasingly popular way for older homeowners to enjoy the benefits of having paid into their homes for decades.
During that time the value of their property has almost certainly soared – meaning they could be ideally placed to release funds and enjoy the benefits.
In many cases, homeowners are using capital unlocked by equity release to ensure they are comfortable during their retirement.
Others are enjoying using it to carry out longed-for home improvements, the dream holiday they’ve always wanted or just to share with family – perhaps to help children gain a foothold on the property ladder.
A key benefit of opting for equity release is that they can stay in the comfort of their own home, without the upheaval of having to move to a new, smaller property.
According to Ivan Lyons, managing director of Investment Solutions, age does not have to be a barrier to taking advantage of the benefits equity release can bring – indeed, the firm has worked with a 100-years-old client who wanted to release money from their property to help with care costs.
“When it comes to retirement, many people struggle to adjust to life on a smaller income,” he said. “One way to free up your housing wealth is to downsize to a smaller, cheaper property but that means upheaval and stress.
“Equity release means they can get to those funds. They could even use them to clear debts or an outstanding mortgage.”
Equity release explained
Equity release schemes allow homeowners to raise money against their property without having to move.
There is the option of paying back the interest, or not. The plan runs until the last person involved dies or moves into long-term care, and the lender is then repaid when the house changes hands.
There are two main types of schemes:
Lifetime mortgage: The most popular form of equity release, it involves ‘borrowing’ a proportion of the property’s value. However, you don’t have to make any repayments on the mortgage. Instead, it’s paid back when the property is sold, which could be after your death or if you move to long term care.
Home reversion: This involves selling all or part of your property in exchange for a lifetime lease. That can provide a tax-free sum or additional income, or both.
Find out more
Investment Solutions, of Grafton Road, Worthing, is an award-winning independent firm of Chartered Financial Advisers with more than 30 years’ experience.
To find out more about how to release money from your property, contact Investment Solutions at www.investmentsolutions.com or call 01903 214640