How to release the equity in your home | The Independent

How to release the equity in your home | The Independent

How to release the equity in your home | The Independent

What could be better than jetting off on a luxury holiday when you finally retire and have the freedom to live life on your terms? Find out how much cash you could access.

Instead of setting the alarm for the crack of dawn each day and heading into the office, you now have the chance to follow your dreams.

Maybe you’ve always fancied trekking in the Himalayas, playing golf on the world’s best golf courses, or driving across the United States.

How to fund amazing trips

Seeing amazing places, eating incredible food, meeting new people and gaining an insight into different cultures is the reality when you start exploring the world.

The only potential snag is how to fund these amazing trips. The opportunities may be endless, but an adventure of a lifetime will come with a hefty price tag.

That’s why so many people are relying on equity release, which can enable them to access the value that’s built up in their homes over many years.

In fact, around 45% of over-55s surveyed by Age Partnership from its equity release client base go on holiday more than twice a year.

Your options

According to Good Housekeeping, over-55s named the Northern Lights as their top destination, while a ride on Switzerland’s Glacier Express came second.

Equity release is a financial solution that provides a means of accessing a proportion of your property value as tax-free cash, without having to move from your home.

Equity release is available to UK homeowners aged 55 or over with properties worth at least £70,000, and comes in two types: lifetime mortgages and home reversion plans.

With a lifetime mortgage, you continue to own all of your own home. It enables you to borrow money secured against your property – which can be taken as a lump sum or in smaller amounts over time.

The less common home reversion plan, meanwhile, involves you selling all – or a percentage – of your house, while continuing to live in the home on a lifetime lease.

What’s involved?

The minimum amount you can release is £10,000, while the maximum will be determined by the age of the youngest homeowner and the value of your property.

Once you’ve paid off any existing mortgage that you may have, which is a requirement of equity release, the rest of the money released is yours to spend as you wish.

Any money that you release, plus accrued interest will be repaid upon death or moving into long-term care. To understand the features and risks, ask for a personalised illustration.

At Age Partnership you have a dedicated advisor to guide you through the journey, act as your point of contact, and answer any questions you may have about the process. They will also explain how equity release could affect the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.

Click here to use our free equity release calculator


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