Staying in the home you love for longer

Most of us want to stay in our homes for as long as we can, but what suits us while we’re working isn’t necessarily what will suit us in retirement: stairs get harder and baths trickier to navigate. While some people have Sufficient SAVINGS TO PUT IN A stair lift or wet room in place of the bath, many others don’t have the thousands of pounds spare to make the necessary changes.

It can leave you feeling like your options are limited to selling up and downsizing. But this can be very expensive with stamp duty and moving costs. And a more suitable home might not be available near family or friends. Selling and renting will leave you with a significant monthly expense for the rest of your life, while not everyone has the option of moving in with loved ones.

All councils will provide an assessment of your needs and may fund lower cost specialist disability equipment such as ramps and grab rails, but for bigger and more expensive changes you may need to find the money yourself. There are options that could allow you to access tax-free cash from your home while remaining the owner. With a lifetime mortgage, homeowners aged 55 and over can release as little as £10,000 and up to 56 per cent of the value of their property dependent on personal circumstances. Releasing some of the cash from your home may affect your entitlement to support from your local authority. An adviser from Key can explain any impact it may have on you. However, it does mean you can stay in your own home and pay for the modifications you need or for in-home care.

Another benefit of a lifetime mortgage is that you don’t need to take all the money in one lump sum, and can instead take a drawdown option, so you release a smaller amount initially then only withdraw further funds when you need them. You’ll only be charged interest on the money you’ve drawn, which could save you thousands of pounds over the lifetime of your loan, and leaves you with the peace of mind of knowing you can access the cash if you need to.

Will Hale, chief executive at Key, says: ‘The vast majority of people are keen to receive care and support in the comfort of their own home but struggle to know how, or how best, they might meet these costs.

‘With the recent economic turmoil, confidence in savings and pension income has fallen, while more people are looking to the value tied up in bricks and mortar to finance care.

‘Getting good advice and understanding what resources you have to draw on is important – and making sure you factor these potential costs into your retirement planning is vital.’

Key’s equity release advice relates to their range of Key-branded products and is completely free of charge. So you can find out if it’s right for you without it costing you a penny.

For the answers to all your equity release questions, order your expert guide to equity release by calling 0800 188 4815.