One of the biggest worries people have is not having enough money saved up when they stop working. But this does not need to be a problem anymore because there are solutions available to help you fund your retirement and make it more memorable! In this article Jason Stubbs, Equity Release Specialist from EveryInvestor will tell more about how to calculate and make use of the equity release funds.
What is Equity Release?
Equity release is a type of loan that enables you to borrow against the value of your property. Simply put, this means that when it’s time for retirement and you can’t afford to live on just one income anymore, equity release could be an option to help cover some or all of what needs to go into living expenses.
How Can Equity Release Help You Fund a Dream Car?
One of the most popular ways to spend retirement is by buying a new car. But with many people finding themselves unable to afford this, equity release can help them finance their dream and make their retirement more memorable!
What Are Some Other Benefits Of Using Equity Release?
- It’s an affordable solution for financing your retirement
- You get access to cash when you need it, without having to sell your house
- Your monthly repayments remain low and manageable as long as you stay in your own home
- There are no penalties for stopping or changing payments if needed – unlike loans from banks where there may be interest charged on top.
Get More Out of Retirement With Equity Release
You may have an appetite for adventure when you retire, but your pension pot is likely to be more modest. You could also find that the value of your property has dropped in recent years due to a lack of demand from buyers – and this can make it difficult to sell up if you want or need cash. Equity release enables people aged 55+ to make the most of their property without having to sell it.
Who Can Get Equity Release?
People aged 55 or over receive a state pension, with either 25% equity in their property and an income of £12,000 per year.
Lifetime mortgages can be taken out by those aged 18-65 years and have at least one-third (33%) equity in the property they want to buy – but some lenders may specify that you must also be receiving a full UK State Pension.
Home reversion plans are available for people aged 60+ with at least 50% equity in their home or business premises; this is up to 100%.
How Much Does Equity Release Cost?
Equity release plans are available to people with a property (or business premises) worth more than £230,000 – and the costs can vary dramatically. The key is that you need to speak to an independent adviser before making any decisions because there’s no ‘one size fits all solution!
Suppose you’re struggling to afford that dream car, a new house with a fantastic view, or anything else in retirement. In that case, equity release may be the solution. Unfortunately, with so much time and money invested into your home equity, it can seem impossible to take out funds without damaging future security. However, many types of releases are available for seniors who want to release some of their equity while still protecting what they have left.