4 Compelling Reasons to Consider Equity Release

 

If you are eligible for equity release, then it could be worth considering as a way to get at the cash which is currently trapped in the bricks and mortar of the building you call home.

There are myriad reasons to consider leveraging this type of loan, so let’s go over just a few of the main perks that are provided by equity release packages.

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Equity release could help your children or grandchildren get on the housing ladder

Property prices have risen rapidly in recent years, and younger generations are struggling to afford accommodation which would have been far more affordable in years gone by.

The good news is that if you are lucky to be a homeowner already and you are mortgage-free, then you could give the gift of a deposit to your kids or grandkids via equity release.

Of course you might be planning to provide this to them in the form of an inheritance. But if you don’t want to only help out close family members after you are gone, equity release is the obvious answer.

You can stay where you are

If you want to access cash from your most valuable asset, then you could always sell it, but downsizing comes with its own issues. Aside from the gut-wrenching decision to leave your family home, there are also the stresses that come with the move itself.

Equity release gives you the best of both worlds, enabling you to remain in your home for as long as you like, while still freeing up those all-important funds which can be spent on whatever you please.

There’s no tax to pay

Speaking of spending the money, you won’t have to worry about being limited as a result of any tax, because this isn’t applicable to equity release.

The reason for this is obvious, because you are essentially taking out a very large loan, with your property being the backing for it.

This also means that there is no specific requirement for you to put the money towards anything in particular. Whether you decide to use it for the aforementioned purpose of helping with a housing deposit, or whether you simply splash out on a lifetime of luxury holidays, it’s really up to you!

There is the specter of interest hanging over your eventual repayable amount, but this type of loan cannot leave you in negative equity as a matter of legal requirement, so you can rest easy on this subject.

Your pension and savings are falling short of expectations

We all try to plan for retirement as much as we can, but in the end it’s difficult to work out exactly how much money we’ll need coming in once we have left the workplace for good.

Lots of people realize that while they have enough money to get by, their pension and personal savings are inadequate when it comes to letting them enjoy their retirement as they had hoped.

As the old saying goes, you can’t take it with you, so if your house is your biggest asset and you feel like you are stuck in it without the money needed to get out there and experience all that retirement has to offer, you can unburden yourself with the assistance of an equity release deal.

Equity release is not necessarily ideal for everyone, and you will need to face up to the fact of leaving less for your family to inherit once you die. However, reaping the benefits in the here and now, and giving them gifts immediately rather than in years to come, can make this all worthwhile.