With many retirees struggling to save enough into a pension, releasing home equity can provide a welcome boost. However, it is important to consider the costs and risks of such a move carefully. For advice from an Equity Release Solicitor, contact a site like Tivoli Legal.
The value of your property, less any outstanding mortgage debt, is known as ‘equity’. You may wish to access this wealth for a variety of reasons, including making property renovations or helping with care fees. You can also choose to let out your property or downsize. These options aren’t right for everyone, and the best way to decide on what you want to do is to talk to a specialist adviser.
Your adviser will assess your eligibility and ensure that the product you’re considering meets your needs. They’ll take into account your financial situation and goals, as well as checking that you understand the terms of the contract. Your adviser will also explain alternative options.
Using an equity release scheme is a significant commitment. You don’t need to make regular repayments, but interest continues to be charged throughout the term of your plan and will increase the amount you owe over time. The loan and any accumulated interest will usually be repaid from the sale of your home when you go into long-term care or pass away. Your adviser can help you understand the impact of this on your inheritance.