HOT PROPERTY BY THE SEASIDE

Freeing up cash from property wealth could help you buy dream coastal holiday home

A beach house is a dream many of us share – and seems all the more attractive as we enjoy this summer’s heatwaves.

Scotland has some of the most romantic scenery in the world, with a stunning coastline and islands.

In hot weather, our spotless sandy beaches and brilliant blue seas wouldn’t be out of place in the Caribbean.

And because we live in a small country, a beach house is usually only a car, train or ferry journey away. One way to afford a cottage by the sea is to consider equity release.

Thanks to the way property prices have climbed over the decades, many retired homeowners are releasing their property wealth to pay for a second property.

Also known as a lifetime mortgage, equity release means you borrow money against the value of your home that doesn’t have to be repaid during your lifetime.

Leading over-55s financial specialists Key Retirement found that retired homeowners released a record £3billion from their homes last year, taking advantage of rising house prices and low interest rates to make their retirement dreams come true.

Equity release is only repaid either when you die or move into long term care.

You won’t have to make any repayments as interest is added to the lump sum that is to be repaid after your death.

It’s not a move to be undertaken without specialist advice, so it’s wise to contact Key Retirement’s equity release advisers.

Always seek professional advice if you are considering equity release, as using this kind of scheme can affect your entitlement to state benefits and will reduce the value of your estate.

Make sure you only deal with equity release providers who belong to the Equity Release Council.

They must guarantee you will never owe more than the value of your home and that you can stay in your home for life, or for as long as you want to.

You can use the cash released from your property to fund a comfortable retirement and have the freedom to pursue your interests.

Market Monitor Report 2017 found that 64 per cent of their clients used equity release for home and garden improvements, a third used the cash to clear debts, one in five used it to pay off their mortgage, 24 per cent to help family and friends and 33 per cent used it to have more holidays.

Dean Mirfin, technical director at Key Retirement, says: “Property wealth is making a huge contribution to retirement planning.

“Equity release is a real alternative for over-55s who are seeing traditional retirement income solutions squeezed by historically low interest rates and pension incomes hit by historically low annuity rates.”