Before considering equity release you should ask yourself the following questions :
Firstly, ‘are you prepared to use the value locked up in your home?’
If the answer is yes, you should also ask yourself,
‘have you considered the alternatives to equity release?’
There are 4 main alternatives ..
- Move to a less expensive property and use the surplus funds to meet your income or capital needs.
- Use any existing resources, such as investments.
- Use assistance from family, grants or unclaimed State Benefits.
- Do nothing and pass on the value of your home, less inheritance tax (40% on anything over £325,000 in 2014-15)
Having considered the alternatives, the next question is ‘have you gathered sufficient information to enable you to make a decision that you and your family, are happy with?’
If you’ve got this far you may well ask yourself –’why didn’t I do this sooner?’
Whilst equity release can provide priceless benefits for many in retirement, it is not suitable for everyone. Is some cases there can be drawbacks which outweigh the benefits. Get impartial advice.
Obtaining impartial advice from a specialist equity release adviser is crucial if you are to make a decision on the right scheme and avoid making a mistake that you may regret for life.