Think you’re too old to take out a loan and buy property in a new neighbourhood? Think again. You see, individuals 55 years old and up have access to something called reverse mortgages. Also known as equity release mortgages, these loans allow you use your current property’s equity as collateral to get cash to not only buy new property but also fund all sorts emergency expenses.

Buying new property

It takes around 111 days to sell property in London based on the numbers posted by The Sun. This means that you’ll have to wait about a third of a year before you can get the money to buy and move into a new home. The good news is that you can speed this whole process up by applying for a reverse mortgage instead. Doing so will allow you to not only get the cash much earlier but also leave the burden of selling your old property to your chosen lending institution once you move out—unless you decide to make rental income off of it, which you can also use to pay off your loan. Either way, a reverse mortgage will give you access to extra cash fast, and that’s all that matters.

Getting emergency money

According to The Telegraph, most retirees are cash poor despite typically having a lot of assets. The thing is, liquidating these assets just to fund urgent expenses like home repairs is usually not a good idea because it also means taking their potential to appreciate in value and earn more money in the long run off the table. Fortunately, by applying for a reverse mortgage instead, you’ll be able to get the cash you need without actually liquidating anything. You can then either just use your property to pay off the loan once you’re ready to move out or pay in cash once you’re more financially capable.

Just be sure you understand the terms of your loan

Of course, as with any other type of loan, the terms of a reverse mortgage would ultimately depend on the lending institution issuing it. So, be sure shop around first and understand the terms of each offer you receive before you make a decision. And if you’re not sure how to go about it, ask a lawyer for help. The last thing you want is to be stuck with a loan that doesn’t really align with your goals.

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