It is a fact that most of the personal financial wealth in the United Kingdom is tied up in their property. Many retired people are “cash poor but property rich”. Equity release can be used in later life to supplement pension income or used to finance major items of expenditure. Such as home improvements or gifts to children and grandchildren to help them on the property ladder.
In the quarter of April to June 2017 £701 million was released from property wealth by the over fifty fives. These figures come from The Equity Release Council. They tell us that over 380,000 homeowners have signed to equity release schemes since they started keeping records back in 1991.
What is equity release?
Equity release allows homeowner aged fifty-five and over to release equity tied up in their property without the need to move house. Unlike traditional mortgages, the plans do not have a set repayment term. They also allow you to remain in their home for the rest of your life.
There are two types of equity release schemes-
Lifetime mortgages
This is the most popular type. You retain full ownership of your property. The interest is rolled up and repaid in full from your estate or if you move house or sell up. This can help with inheritance tax planning but is not a key consideration.
Home reversion plans.
These are less popular. You sell part or all of your home to a reversionary provider in exchange for a cash lump sum.
For more details please read our website by clicking here.
Is it right for me?
Equity release plans are not right for everyone and it is important that you fully consider your options. At Anstee & Co we are independent financial advisers who will work with you. If appropriate we will encourage you to involve your family. It is also important that, if you do decide to use an equity release product, you choose one that meets your needs. We feel that the need for independent financial advice is very important.
Taking an equity release plan is normally a long term option. There are flexible plans available that may fit your needs and some will allow you to repay in the future without any penalties. Our team of financial advisers can help you to choose the plan that is right for you. We will get to know your financial position and what you are trying to achieve. When we fully understand your needs we will make a recommendation.
Peter Anstee from Anstee & Co said-
“When designing a long term financial solution I always feel that you should take your time. Receiving professional, unbiased, independent financial advice is paramount.”
Why not contact us today to find out more.
The first meeting is free of charge. We have offices in Stamford, London and Kettering. Our financial advisers make use of meeting rooms in Wellingborough, Northampton Towcester, Bedford and Warwick to provide financial advice. We will also come to your home at a time that is convenient for you.
Our expert financial advisers cover Northamptonshire, Lincolnshire Warwickshire and Bedfordshire.
We are members of The Equity Release Council.
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