The latest figures show equity release is booming in popularity. It’s ideal to explore if you own your property and need some extra cash to fund your ambitions.

Retirement, pensions and ambitions

Retirement and equity release

The truth is, for many people their retirement income is not enough to pay for the extras. Taking a sensible amount out of your property, while taking care to leave enough to loved ones, is becoming an increasingly popular move.

You don’t have to sell your home, downsize or even give up any ownership to get money out of your property. People releasing equity are able to stay in the place they call home, while enjoying the extra cash.

 

Why are more people releasing equity each year?

Everyone has their own reasons, but it essentially comes down to wanting a more comfortable, enjoyable lifestyle:

  • To pay for home and garden improvements
  • To help your loved ones financially at a time when they can put it into good use, e.g. weddings, businesses, education, property
  • To help clear your existing mortgage and bills, freeing up monthly payments
  • To pay for the things your retirement income won’t, such as holidays, hobbies, cars and other treats

 

Considering equity release?

Whether you're curious as to how much you can release, or you want to take the initial steps towards releasing equity, the handy calculator below will give you the information you require.

 

Are there any downsides?

There are always things to consider when it comes to money. Equity release is no different.

It could affect your entitlement to state benefits. Or course, by taking out money now, there will also be less to leave in your estate.

Historically, property prices have risen in the long-term, which could replenish some of the equity taken out today. There is no guarantee of that, but house prices have risen by 537% in the last 30 years.

When releasing equity through a reputable company, an adviser would usually be available to talk through any issues you may encounter.

 

How it works

Homeowners aged 55 and over can receive a tax-free lump sum from their property to spend as they wish.

Rather than making monthly repayments, the interest is added and repaid with the original amount when the homeowner passes away or goes into full-time care.

There’s also an option to have an additional amount kept on reserve which accrues no interest until you use it—a handy money-saving feature.

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