Equity release and your parents
For many retirees searching for greater financial freedom, equity release is increasingly providing an attractive option. Though you personally may not currently have need of the solution, a parent or other relative who is in or approaching their retirement may find it useful to consider as a way of generating an extra income during their well-deserved retirement years.
Equity release is for people over the age of 55 who have typically paid off the outstanding mortgage on their property. With few ongoing costs, retirees in this situation can enjoy their well deserved years off work. Equity release can help to fund this period by releasing the money your parents have spent years investing into their property.
You may also have read about the funding gap for retirees. Though the state pension is there to help, many retirees are finding that the income this provides plus any small private pensions they have are not enough to give them the lifestyle they want in their retirement. If your relatives are struggling to live their well-deserved later years to the standard they always wanted then equity release can help to make a difference.
Equity release is a very bespoke solution and the process can be complicated, so it is important that everyone considering it as an option gets comprehensive, impartial advice, which is exactly what we offer anyone who approaches us about equity release. Personal circumstances and suitability vary greatly but we will talk your parents or relatives through their options clearly so that they can make an informed decision.
In practice equity release can work in a variety of ways but mainly there are two common routes for most people to take when using equity release as a solution.
The first is what is known as an ‘equity release mortgage’ and the idea is to provide your parent or relative with an income throughout a set period, or for the rest of their life. Coupled with any existing pensions or savings, this can make for a considerable regular source of funds to ensure they get to do everything they wanted to in their retirement.
The other option is to release the equity from their property on a lump sum basis, giving them an amount to use immediately. This could be used for items common in our later years. Often, equity release is used for long term-care, for example, or to address health concerns. A lump sum released in this way could also be used to help younger family members with large purchases, such as buying their first home.
If you are interested in finding out more, or you think your parent or relative would benefit from equity release, then please do just visit our contact page and get in touch. We would be more than happy to have an initial chat with either you or your relatives and, if appropriate, to then sit down for a consultation. Equity release can be a complicated topic but we are dedicated to helping you to find the answers you and your parents are looking for.
THINK CAREFULLY BEFORE SECURING OTHER DEBT AGAINST YOUR PROPERTY.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.