Enjoy your home’s equity
THOSE who have or are about to retire deserve to get the best out of life. And this might mean deciding to make the most of their finances by enjoying the equity that has built up in their property.
When other routes for boosting retirement income are not available, equity release might be able to help.
People do not have to sell their home and nor do they need to move out. With the most popular lifetime mortgage plans they maintain full home ownership, so could continue to benefit from any future increase in their property’s value.
The more your home is worth, the more money you can release from it. And now could be a great time to do this, as average UK house prices are at a record high, according to Nationwide, with a rise of 23 per cent since 2012.
This means you could unlock more tax-free money from your home than expected, whether to spend on home improvements, a holiday of a lifetime, a car, or to repay your mortgage or help family members.
Most people choose not to make monthly interest payments, in which case the loan and any accrued interest is simply repaid when they pass away or leave the property — by moving into long-term care, for example.
It is best to speak to a qualified adviser, who will tell you all you need to know about equity release, including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future.