Equity release now more flexible

WITH house prices rising so much in recent years, there s been a change in the way people view their properties. For those who could do with a little extra money, equity release can make life more comfortable, help to pay bills, fund holidays and enable them to help their families. Lower interest rates mean lower costs for equity release customers, making for better value for money. Today s house values also mean there will always be some equity left in the house after releasing a certain amount, to call on later or leave behind for loved ones. And importantly, it means customers can release larger sums of money. According to the Equity Release Council, customers released an average of £70,000 last year. You can release more or less, related to your age, your property value and needs. Larger sums are often taken to pay off a mortgage or debt, or meet some major spending plans. But there are also plans available for those who want modest sums from around £10,000. You can take the cash sum you need, but also have access to a similar-sized pot of cash and take £2,000 or £3,000 at a time, as needed. Professional advisers will assess your situation to ensure that equity release will benefit your situation. They will check your entitlement to means-tested state benefits, to ensure that equity release will not affect this, and also explain ways of ensuring you can leave a legacy by ring-fencing a proportion of the value of the property, to strike the right balance. It s worth reading a guide to equity release and having a chat with a professional about how it might help you.