Is releasing cash from your home right for you?
Today, we are typically a cash poor but property rich society. For many people, your home is likely to be your biggest financial asset. It's often worth much more than any other investments or savings.
However, getting your hands on this cash to pay for renovations, long-term care or retirement is a major step. It requires selling your home, downsizing or releasing your cash in some other way. There are lots of things to consider.
First off you need to understand clearly what's involved. Releasing equity is simply the process of making the money in your home work for you, either by giving you a cash lump sum or a regular income. There are many options, depending on where you are in life.
Your home may be repossessed if you do not keep up repayments on your mortgage.
Equity Release is a lifetime mortgage or home reversion scheme. To understand the features and risks, ask for a personalised illustration
Planning for the future
Consulting a financial adviser before making any concrete decisions is wise. Borrowing against or selling your home is a long-term financial commitment. Some lifetime mortgages add the interest to the amount you owe each year; this will reduce the remaining equity in your home, so if you live a long time or house prices fall, there may be no equity left for your heirs to inherit.
Depending on your financial situation, we can help direct you towards the best option:
· helping you to consider the most appropriate way to generate cash or income;
· highlighting the risks and real costs involved;
· illustrating how the value of your estate will decrease;
· discussing the implications for your family on your death.
If you're thinking seriously about equity release, we may consider things you haven't. Why not talk through your ideas and concerns with us today?
'Equity Release' includes home reversion plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.
Typicially I charge a fee of 1.65% of the loan amount. So for example an £100,000 lifetime mortgage will cost £1650.