EXPLORING OPTIONS
Leading experts launch guide to help homeowners decide if money plan is the right way forward for them
TENS OF thousands of Scots have money tied up in their homes and are now looking for ways to unlock this money and put it to good use.
It can seem like a complicated issue and so equity release specialists Key Retirement have launched a new guide to help Scots understand the options available.
The guide looks at the most popular uses of money released from properties including, but not exclusively, repayment of debt, home improvements, paying for that holiday of a lifetime, and helping family get their first foot on the property ladder.
Equity release is available to homeowners aged 55-95 who have a property worth £70,000 or more and the average amount of money that Key Retirement’s customers release from their property is now about £55,000.
The cash is tax-free and can be given as a lump sum or as a regular income that doesn’t need to be repaid until you or your partner pass away or move into long-term care.
The guide explains the different types of equity release plans available, including the lifetime mortgage, which is the most popular type of plan at the moment that allows you to release money tied up in your home to spend however you like.
Your home remains your own and, as with a traditional mortgage, the loan is secured on your property.
The amount you will be able to borrow will depend on a number of factors such as your age and the value of your property. There are several versions of the Lifetime Mortgage that are explained fully in the guide.
The guide includes case studies from customers who successfully released cash from their properties and used it to enhance their quality of life.
It also contains a question and answer section which explains some of the more common queries that customers have, including what happens if you want to move home after you have taken out an equity release loan and why it’s so important to make a Will and consider a Power of Attorney arrangement.
The guide also takes you through the complete process from the first meeting you will have with a Key Retirement adviser right up until the time that the money is released and paid into your bank account.
Key Retirement is the UK’s No 1 equity release specialist and its customers are guaranteed unbiased and specialist advice from a fully qualified adviser who will explain all of the available options before helping you choose the one that is most appropriate for you.
And that’s only after having agreed with you first of all that an equity release option is the right thing for you to do.
There are obviously implications for your estate on death and equity release may reduce the value of the estate.
The Key Retirement adviser will explain all of this to you as part of the process of working out if equity release is right for you.
The advice is free of charge and only if you decide to proceed with an equity release plan, and the typical fee will be about 1.95 per cent of the amount released.