Equity Release
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Equity Release Mortgages
We are all living longer, it's a fact. The average male aged 65, is likely to live to 81 years old. A 65 year old woman will probably live beyond their 84th birthday.
This is great news but it means that your retirement is likely to be a lot longer than you expected it would be, hence your income will need to last far longer and keep up with inflation in order for you to enjoy your retirement.
- Before going any further, should you need additional income the most sensible and financially efficient option may be to sell your house and buy something smaller, more manageable and cheaper to run, investing the difference to produce an income.
- Other alternatives worth investigating are that of renting out a spare room(s), which can provide tax-free income or, (for larger properties) the conversion of part of the house into an apartment and renting it out.
However, if these are not viable options for you, Equity Release may be worth considering. Over the years your home will have provided you with happy memories, comfort and security and now it is likely to be your greatest asset.
What is Equity Release?
Equity Release is a way of getting tax free cash from the value of your home without having to move out of it. This means you have cash available for enjoying your retirement whether that be for taking holidays, a new car or even the more mundane but necessary home maintenance. Alternative reasons to use Equity Release may include:-
- To help avoid Inheritance Tax (Death Duties).
- To pay off an existing mortgage, loans or credit card debts.
- Essential purchases such as a new fridge, central heating boiler or a new car.
- To help the family out financially perhaps with school or university fees or family debts.
There are two main types of Equity Release Schemes available:
- Lifetime Mortgages
- Home Reversion Plans
Both allow you to release equity from your home, spend the cash in whichever way you choose, make no monthly repayments and stay in your home for life. However, Equity Release Schemes are complex and you should always consider taking professional advice before making any commitment.
At HFM Columbus Partners LLP, as well as being independent, all of our staff within the mortgage division have specialist qualifications in Equity Release and our advisers will be happy to advise you specifically to your needs and circumstances. Alternatively please click here and we can send you a copy of our FREE Equity Release Booklet which provides all the facts about Equity Release.