Equity release is a method through which you can turn the equity in your home into a cash sum. It allows people to remain in their own home without downsizing and helps people who are sitting on a house with no mortgage to use the house as an asset to generate an income or receive a lump sum.
The main types of UK equity release are as follows:
Equity release certainly won’t be for everyone, and is an action you should take time to consider. There are other alternatives available. Some building societies have now extended the upper age limit on mortgage applications so there are other options that you should consider before going down the route of Equity Release.
Equity Release has the benefit of releasing capital from your house and can provide a lump sum or additional capital for you to use in later years. It is always recommended to get your family on board as this could reduce the amount of money you have to leave on your death. It could also have an effect on any means tested benefits you may be entitled to. Then again, you may decide to simply downsize your current home and use the cash earned there to your advantage.