Over 55s want to stay put

It’s no great surprise that many of us feel an emotional attachment to our homes – they are our safe haven and can anchor us to a community.

As survey has revealed that 43 per cent of homeowners said that they felt lost, sad or grief when they moved home. Which highlights just how attached we are.

Moving home can not only be a big emotional upheaval, but a physical and costly one too.

It’s little wonder that when Age Partnership surveyed 1,159 of their completed equity release customers, aged 55 and over, 72 per cent said they chose not to downsize because they wanted to stay in their current home. Equity release provides a way to access some of the money locked up in your home without having to move or downsize. The money that you release is tax-free, and you have the option of not making any repayments if you choose not to, because the loan plus the interest est accrued is repaid when you pass away or move into long-term care.

If you have an existing mortgage, you will need to use some of the money that you release to repay this, but the remaining money is yours to enjoy spending.

You will need to take advice before going ahead with equity release and your adviser will discuss alternative options with you, such as if you’ve considered downsizing. They can also provide you with a personalised illustration to explain the features and risks of equity release. Equity release may involve a home reversion or a lifetime mortgage, which is secured against your property. With the most popular form of equity release, a lifeti lifetime mortgage, you still continue to own 100 per cent of you your home and will benefit from future house-price rises.