Though we might not want to consider it, during retirement many of us will start to consider the legacy we are inevitably going to leave behind at some point to our family and others close to us.
The idea that we can leave something behind to help those we love can be a great comfort later in life, but what if we could make a real difference now? What if we could see our loved ones enjoy the benefits that would come with an inheritance?
For many people who wish to experience just this, equity release is providing them with an answer. Designed to allow people to take equity out of their prime asset – their property – during their retirement, the solution allows people to pass on wealth to their family, where otherwise the family would have to wait for some time.
How is this being used practically? Well, the solution can be used for any purchase an individual wants really, but in terms of passing on wealth it is often used in one of two ways.
Firstly, taking equity out of your own property can be a very good way of helping a younger family member to get their own footing on the property ladder. Releasing some of the equity held in your house could be enough for a grandchild to place a deposit on their first property, for instance. Witnessing them move into their first home can be a very powerful experience indeed!
Another common usage for the equity freed with equity release is to help grandchildren or children to reduce or even to pay off an existing mortgage. By eliminating mortgage payments for your children you can free their capital for all sorts of things, including for things such as private education for grandchildren, or other good uses of their income.
If you’ve never investigated equity release before then do seek expert advice: it can be a complicated financial solution. There are also many ways in which to receive the income you draw from the equity you gain and which one you choose will need to be carefully balanced against your initial aims.
If you have any questions regarding equity release then we would be happy to talk you through them. Please do get in touch via the Contact page and we’ll be more than happy to provide any help we can.
THINK CAREFULLY BEFORE SECURING OTHER DEBT AGAINST YOUR PROPERTY.
YOUR PROPERTY MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR OTHER DEBT SECURED ON IT.
THIS IS A LIFETIME MORTGAGE. TO UNDERSTAND THE FEATURES AND RISKS, ASK FOR A PERSONALISED ILLUSTRATION.