Many individuals and married couples find that the money they have after retirement is not what they hoped, whether they simply did not save enough or incurred more debt than they previously projected. It can be difficult to retire with any degree of comfort if this is the case, making equity release a possible solution to your money troubles. It is not uncommon for a person to discover that he or she is asset-rich and yet poor in cash with the majority of his or her cash tied up in his or her property.
For this reason, more and more people have begun to unlock some of the wealth tied up in their properties using equity release, but this type of decision may not be best for everyone. First, you must take into account the potential problems caused by choosing this option for some fast cash. By contacting an experienced and reputable professional on the matter, you can go into the scheme with the right information on your side.
Avoiding a Move
Although the number of people who move to new homes two or three times in their lifetimes has increased in the last few years, many retirement-age individuals would rather avoid moving into smaller homes at new locations. A smaller property may be more cost-effective but the home you love has far too many memories and important emotions attached to it to really consider a move. To help avoid this type of situation, you could choose equity release to avoid the stress of a move and stay right where you love the most.
Unlike a traditional mortgage in which you would be required to make monthly repayments, the interest in your equity release will roll up and then be paid back to the provider along with the original loan. Remember that this can decrease the value of your estate, which may affect an inheritance that you might want to leave to someone you care about later on. This is one reason why you should always speak with a professional to ensure that you make an informed decision on whether this is the best option for you.
Rates are lower now than ever, making any example of equity release look more appealing to those considering the option. By working with a professional to help you consider equity release responsibly, it should be relatively simple to decide whether you need this type of option. If your situation and the conditions work in your favour, the same professional who is there for advice can help you through the process and also help you make the most of the money earned.
Some people choose this type of cash release because they want to make some improvements to their properties but this should not be done for just any improvement. Small projects, such as repainting the interior, may not be the best reason to consider this option. Conversely, the need for a new kitchen or an entirely new bathroom could be an enormous expense and equity release could be the best way for you to get the cash you need to make it happen and keep your home functional.