Before understanding equity release do you know what equity is? Equity is the difference between the property value and any mortgage or secured loans you still have outstanding. Equity release is a method of unlocking the equity portion of your home without the need to move home.
What do people use equity release schemes for?
Some common reasons for equity release schemes are; home renovations, a special planned vacation, buying a car, adding money to retirement funds, or paying for medical care needs. A lot of senior people also use equity release for reducing tax liabilities for their family or paying for their grandchildren’s education. Despite the advantages of an equity release, you must keep in mind that you are exhausting the equity you have built up in the home. So, if you need to sell the house, the built up equity is no longer available to you.
How do I qualify for equity release?
You will qualify if you or the youngest if you are a couple, are aged over 55 and have sufficient equity in the home to release given your age and property value.
To find out if you qualify and to see which of the many equity release schemes might be right for you, seek information, help and advice from an adviser that is qualified to discuss equity release.