Equity Release Scheme (ER).

For those in retirement,  today’s very low interest rates means that the amount they can earn from their savings is severely curtailed and this can cause problems.
Generating sufficient income from savings to enable a long comfortable retirement remains a huge challenge for many households
But if you own your property you can use this asset to help generate income to help fund your retirement, or anything else you can think of such as helping your children too buy their own properties.

This can be done through Equity Release and it has been very useful for many people. 

The advantages include:

  • A Tax free lump sum of money (unlike a pension, which is taxed).
  • Maintaining 100% of home ownership (if you take out a lifetime mortgage - the most popular route).
  • Spending the funds on anything you wish.
  • Accessing a cash reserve facility.
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Working out your equity.

Your Equity is the current market value of your home,  minus any mortgage outstanding.

Many people choose to leave it tied up in their property throughout their lives which can mean that the money they have available to spend in retirement is limited. 

However, more and more people are now choosing to release some of this equity and turn it into a tax-free lump sum of money to spend as they wish. 

Helping to fund retirement is one of the most popular reasons why people do equity release but other reasons can be to go on that holiday of a lifetime, new car(s) or to help family members buy property or invest in businesses. 

 

Equity release products are almost exclusively designed for retirees, with many plans only available to the over 55s. Ask us for details to see if equity release is right for you.

Ask us if Equity Release is right for you.

We can help you to decide if Equity release will work for you in your current situation.
As with all any financial instrument, you will need to access your situation on an individual basis and make the best decision for your own circumstance.
We can provide professional advice to help you to decide.
You do far better with the cash than eventually leaving it to go to the HMRC.

References