Make Me A Will has partnered with The Equity Release Information Centre, AskERIC, to provide you with free, impartial advice on release the cash from your home to help give you the retirement you deserve.
What is Equity Release?
Equity Release is the term to describe Lifetime Mortgages and Home Reversion Plans.
If you are a homeowner aged 55* or over, Equity Release could help you to free – or ‘release’ – equity from your home, so that you’ve got extra cash to spend on the things you want or need.
“Equity” simply refers to the difference between what your property is worth and any outstanding loans, such as a mortgage loan secured on the property.
- Your house is worth £150,000. You have retired and paid off all your debts, including the mortgage. Your equity is £150,000.
- You bought your house for £100,000 with the help of a mortgage of £80,000. The value of the house is now £200,000 and the outstanding mortgage is £10,000. Your equity is £190,000
Why should I consider Equity Release?
More people than ever are now considering Equity Release because of factors including: cut backs in state pensions, inadequate private and company pensions, longer life expectancy and improved Equity Release regulations. For many people though, they just want to improve their quality of life.
The most popular reasons for taking out Equity Release plans include :
- Home improvements (new conservatories, double glazing, garden improvements)
- Clear debts (credit cards, loans, mortgages, reduce out-goings)
- Holidays, cruises and short breaks
- New cars, caravans, holiday homes
- Family treats (grandchildren’s school fees, gifts)
- Improve retirement or enable early retirement
- Private medical care or mobility items
- Help children onto the property ladder
- Reduce liability to inheritance tax