As we get older, our property is often our largest asset where most of our wealth is held, however it is not always easy to access this without selling up and downsizing.
With people increasingly finding themselves short of cash later in life, it is becoming more and more popular for people to consider releasing the equity that is tied up in property.
What is Equity Release?
With the rise in everyday living costs over previous years, it may be that your regular pension income is insufficient to cover the cost of living, or that your savings have dwindled too quickly. Equity release can be an option for you if you want to make use of the money that is locked up in your property without having to move from your home.
You may use the money however you wish. You could:
- Pay off existing debts
- Help fund holidays
- Make home improvements or;
- Financially help out your children
Equity release allows you to release a lump sum from the value of your home in the form of a loan, or by selling a proportion of the property whilst retaining the right to live in it. Any arranged loan is then repaid, along with interest, when the property is sold either on death or you permanently entering a care or nursing home.
Many products also come with a “No negative equity” guarantee, providing protection that you will never owe more than the value of your property when any loan becomes repayable.
There are many things to consider before deciding to proceed with equity release, for example, it means that your overall estate will be reduced on your death for family members or beneficiaries. You could also have other options that you haven’t considered. Receiving Independent Financial Advice is key to you being able to make a fully informed decision and discuss the options available to you with a professional unbiased expert.
What Can SM Financial Services Do For Me?
The advisers of Simpson Millar Financial Services Ltd have the specialist knowledge and expertise in the area of equity release to make you feel assured that you will receive the best advice possible. There are lots of things to consider when deciding whether or not to choose equity release, so we’ll make sure that you are fully aware of all the facts and fully supported when making your decision.
Nicola Hartley, our Independent Financial Adviser, has experience in providing all aspects of later life financial planning advice to clients.
Nicola is also a member of the Equity Release Council, an industry body which endorses specialist advisers and provides a link for individuals needing advice on equity release to a reputable and specialist financial adviser.
We offer free no obligation initial discussions and will happily obtain you a quote for the lump sum you could release from your property as part of this discussion so that you are able to make an informed decision before deciding whether you wish to proceed.