30 May 2014

Equity Release in the Mainstream

In 2013, £1.07 billion was raised through Equity Release plans. And with booming house prices (in the South East at least), I would expect that figure to continue growing.

That's because an increasing proportion of someone's wealth will be tied up in bricks and mortar. And while it may be great for many people to be able to pass the value on to family in due course, there's also a case for taking advantage of some of that growth yourself! An Equity Release plan provides the liquidity, enabling you to receive a lump sum (or a series of lump sums as an "income").

There is a cost, of course. With a Lifetime Mortgage (the most common form of Equity Release plan) the main cost is the interest on the loan which is added to the amount outstanding and has to be deducted from the value of the house after you die or move into care. And there are advice fees, too.

But to live a better retirement, plenty of people would say it's a cost worth paying.

Contact us for more information on Equity Release plans.

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