For an increasing number of over-55-year-olds, equity release is becoming a more desirable and realistic option. What does equity release do? In essence, it frees up all the equity tied into your home so that you can enjoy it while you’re still alive and kicking. It’s a way of giving yourself more time to enjoy your money rather than letting it fester as part of your mortgage. Yes, you could downsize into a smaller property, but why sell the home you love when you don’t need to?
Equity release may be a significant opportunity for you in retirement, so it’s a good idea to see how much equity you could release. Then you can ask yourself the question – what can you do with your newly released equity beyond simply funding a more comfortable retirement?
Help out the family
Unfortunately, we’re living through a time when our loved ones are more likely to be in need of financial assistance than ever before. Getting on the property ladder is the toughest it has ever been, and the pandemic has impacted many families financially. Equity release could be the perfect solution here if you don’t have the money available to lend a hand.
Fund long term care
On the flip side of the coin, you might have found that you are in need of a little more help yourself in your old age. Perhaps you have a long-term medical condition that requires care and it’s not something the NHS is willing to fork out for? Or perhaps your partner requires a level of care you wouldn’t be able to offer alone? In this situation, equity release may help ease the weight a little.
Particularly if you’re retired, you’re going to be spending a lot more time at home. That means you’re probably going to want to make sure you are as comfortable as possible. Perhaps you’ve always meant to have a conservatory installed but just couldn’t find the time or funds for it? Or maybe the furniture in your home is decades old and falling to pieces? Either way, with all that released equity there are dozens of potential home improvements you could get a start on right now.
Book a once in a lifetime trip
One of the most rewarding things about retirement is that it finally gives you a license to spread your wings and travel. Without the burden of a job, you are free to go wherever your heart desires whenever you want and with no repercussions. That is, of course, if you have the funds. Is there that one trip you’ve always been dreaming of but never thought you’d be able to afford? With equity release, you could get there. You might even be able to bring the family along for the ride.
Clear existing debt
If monthly loan and credit card repayments have started to stack up and you’re paying more in interest than you ever thought you would, equity release could clear all of your debts in one fell swoop. This could help you to become debt-free in your retirement which would make your financial situation much more comfortable.
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