As equity release becomes a natural part of the retirement planning process, that you will never owe more than the value of your home and that you retain 100% ownership of your property is becoming common knowledge. The Reader’s Digest equity release experts offer some lesser-known ‘Top-Tips’ about Lifetime Mortgages, a form of equity release.

1. Advice is essential

The finer details of equity release can be simplified and best explained by a qualified equity release adviser. Reader’s Digest can put you in touch with approved advisers who can explore your eligibility and available options.

2. Have a clear idea of your financial needs

Knowing how much money you need and what you need it for will help your allocated adviser to find the right kind of plan for you. You will be advised that by only taking what you need you can minimise the interest build up with the opportunity to reserve further funds to draw from later if needed.

3. Considering the alternatives

There are alternatives to equity release such as selling up and downsizing to a cheaper home. Should you choose to meet with a Reader’s Digest equity release adviser, they will talk you through all of the alternatives to equity release which includes exploring your benefits entitlement.

4. Take note of the repayment option

If you have a sufficient income you can opt for an interest and capital repayments plan. One year into the plan you can start making repayments of up to 10% per year. By making repayments you are helping to keep the interest build up to a minimum which maximises the amount of inheritance you leave to your heirs.

Another benefit of this plan is that you can choose to make no payments at all which may come in useful should your circumstances change such as going in to retirement.

5. Involve family and trusted friends in your decision

Equity release involves taking money from your property now, which means there will be a reduced estate for your heirs later. Even though you can guarantee an inheritance as an option, it’s recommended to involve your heirs and/or trusted friends in your decision as they will be the ones talking to your equity release provider once you pass away.

These tips are offered to help understand equity release; however, you may have further questions which are not answered here. Contact us using the details below to learn more.

To find out if you are eligible to use equity release as a form of inheritance tax planning, free phone 0808 231 1968 to speak with a specialist adviser who can answer any questions you may have.

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