Improving health and an increase in life expectancy is putting a strain on people who fund their lifestyle on
limited resources, particularly in times of instability on stock markets and low interest rates.
Coupled with this is the increase in debt being carried into retirement, funding the provision of care, supporting children in adulthood and the growth in relationship breakdown with the over 60s.
As an owner, your property is probably your biggest asset and with the passage of time there has been an ever-increasing number of homeowners turning to equity release as a means of releasing some of the tax-free cash tied up in it. What started off as a scheme to enable people in need to release capital or income from their home has developed into an integral part of financial planning to be used in a variety of ways including:
- maintaining your standard of living by supplementing income or replacing capital
- consolidating credit cards, loans and other debts
- paying off an interest-only age restricted mortgage
- home improvements and adaptations
- holiday of a lifetime
- funding medical and social care
- assisting children and grandchildren on the property ladder
- funding divorce or civil partnership settlements for self or children
- paying school and university fees
- mitigating inheritance tax
Equity release is highly regulated and there are many safeguards in place to protect those who take out a plan, however, it is important that advice is sought from a specialist solicitor and financial adviser with the relevant experience early in the process.