Could eq­uity re­lease give you a wel­come cash boost?

Rutherglen Reformer - - The Ticket -

They are turn­ing to eq­uity re­lease as a way to help out loved ones, travel or carry out home im­prove­ments.

Many are mak­ing mod­i­fi­ca­tions and changes to their home, not only for a com­fier re­tire­ment but also for health rea­sons.

So,what does an eq­uity re­lease scheme al­low you to do? Es­sen­tially, it re­leases tax-free cash from your home to spend as you wish, with typ­i­cally no monthly re­pay­ments to make.

A cli­mate of low sav­ings rates, poor pen­sion pay­outs and in­fla­tion means eq­uity re­lease is be­com­ing a pop­u­lar op­tion for older peo­ple on fixed in­comes who need a cash boost.

Many over 55s who take this route ar­gue that there is no point sit­ting on wealth and strug­gling fi­nan­cially when they can make eq­uity work for them now, when it’s needed.

With prop­erty prices ris­ing by four per cent in Scot­land and record-low in­ter­est rates now avail­able for eq­uity re­lease plans, there has never been a bet­ter time for home­own­ers to make the most of their prop­erty wealth.

Ac­cord­ing to new anal­y­sis from lead­ing over-55s fi­nance spe­cial­ists Key Re­tire­ment, eq­uity re­lease plans have boosted Scot­tish prop­erty own­ers’ re­tire­ment fi­nances by more than £86mil­lion in the last year alone.

Dean Mirfin, tech­ni­cal di­rec­tor at Key Re­tire­ment, said: “If you’re con­sid­er­ing eq­uity re­lease to pay for home im­prove­ments or for other rea­sons, you can speak to one of our ad­vis­ers ei­ther over the phone or face-to­face.

“They will give you no-obli­ga­tion in­de­pen­dent ad­vice about whether eq­uity re­lease is the best op­tion for you, whether your en­ti­tle­ment to state ben­e­fits may be af­fected and how the value of your es­tate will be re­duced.”

Eq­uity re­lease is avail­able to those aged be­tween 55 and 95 who own a prop­erty worth at least £70,000.

It al­lows tax-free cash lump sums to be taken from the value of the own­ers’ prop­er­ties.

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