Eq­uity re­lease freed up prop­erty cash

Rutherglen Reformer - - Gossip Girl -

But 70-year-old Colin McKenna has no plans to start slow­ing down any time soon.

The pen­sioner, who lives in Brechin near Aberdeen, is just as busy now as when he worked as a con­tract spe­cial­ist in the oil and gas in­dus­try, thanks to his prop­erty in­vest­ments and home ren­o­va­tions.

Colin has bought and sold prop­erty for a num­ber of years – in­clud­ing two units in Dubai and three in Aberdeen – but re­cently re­leased some of the cash tied up in his cur­rent home to en­joy his re­tire­ment years.

Opt­ing for an eq­uity re­lease plan with the UK’s No.1 eq­uity re­lease spe­cial­ists, Key Re­tire­ment, Colin was able to pay off the mort­gage on his lux­ury Florida condo, which he bought in 2006.

He said: “I’ve got a condo that is part of a ho­tel out in Florida. It’s been rented out since I bought it, and the rent had been used to re­pay the loan.

“But now that the loan has been re­paid, I can ac­tu­ally en­joy that money.

“I chose eq­uity re­lease be­cause I wanted to raise cap­i­tal to do what I wanted to do with­out hav­ing to pay any­thing back.”

Eq­uity re­lease is avail­able to home own­ers aged over 55, al­low­ing them to re­lease a tax-free cash lump sum from the value tied up in their home. With typ­i­cally no monthly re­pay­ments to make, the money can be spent on any­thing from home im­prove­ments to hol­i­days.

And like lots of other re­tirees, Colin has also used his cash wind­fall to up­grade his cur­rent home, spend­ing £6000 on land­scap­ing his gar­den, and ex­tend­ing and up­grad­ing the semide­tached prop­erty.

Al­though eq­uity re­lease isn’t right for ev­ery­one’s fi­nan­cial sit­u­a­tion, Colin found it was a good way for him to make use of the money he had pre­vi­ously in­vested.

He ex­plained: “The house I had in Aberdeen [be­fore my cur­rent home] was a big house with quite a big mort­gage. Folk kept say­ing ‘oh we don’t do life­time mort­gages’ and I didn’t re­ally know what they were talk­ing about. So I sold the house to pay off the mort­gage.

“I in­vested in this house in Brechin and it was all mine, and so when I found out I could get the money out of the house, I thought, ‘Oh well that’s good, I can still stay in a house but get the money too.’”

Now Colin is con­sid­er­ing re­leas­ing more cash now that the value of his home has risen.

He said: “I might re­lease more money in the fu­ture if my house is worth a good bit more than it was. It was val­ued at around £175,000 back then and now I might be able to get £190,000 to £195,000.

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