With upgrades in medical technology, people are becoming more health-conscious. From switching to organic foods, seeking advice from nutritionists and going to the gym to keep fit, the life expectancy has also gone up, and now people are living way past 60 years. Even with this significant shift in the mortality rate1, the economic sector is struggling, and now it’s challenging to afford the luxuries of life.
If you’re 55 and above, a homeowner with an estate worth more than €70,000 and reside within the remits of the UK, you can get some extra cash with the newest kid on the financial block – property equity release. It’s one of the most efficient ways to get some of the money locked up in the value of your residence without having to move houses.
The plan allows you to unlock some of the equity tied up in your home by turning it into a cash lump sum or monthly income. It also offers you two schemes, the lifetime mortgage and the home reversion plan. One of the most incredible aspects of this plan is that you retain the right to reside in your home until you pass on or move into residential care. Based on the equity release2 scheme you take, you can release the capital as a lumpsum3 or in a series of dogmata, and it’s up to you how you spend it.
What’s more incredible is that the scheme offers you a chance to get tax-free cash that you can spend as you wish. So, you can opt to spend the capital to pay for a trip to your ideal holiday. So, if you’ve always wanted to sip some chilled white wine on the beaches of the Maldives, go on a trip to Weymouth or feel the sun in a Thai archipelago4, then equity release can be what you’ve been looking for.
The scheme also allows you to boost your income. You know, sometimes your pension savings can be inadequate and with the life expectancy on a 0.08% increase since 2019, you need some extra income to help make ends meet. Therefore, if you want to assist your family pay for their kid’s school fees, this is the best financial product for you.
Divorce rates in the UK have also been edging up lately. With the economic crisis and with the financial hurdles, couples face when dividing assets and savings, one of the most stressful parts is figuring out who keeps the estate. If your partner doesn’t want to stay, or one of you can’t afford to buy each other out, you can choose to sell the home or take out the equity release plan. The scheme will not only allow you to free up some capital but also assist you in purchasing your spouse out, thus making the divorce process less stressful.
The scheme also allows you to make investments. Thus, if you have any lifelong dreams like opening up a restaurant or investing in real estate, then equity release can help you make those dreams come true.
It also helps you clear your debts. School loans and other incurred costs can be very costly. However, with equity release, since you can repay it when you die or move into permanent care, it can be the most suitable financial plan to help you get out from the debt ditch.
Therefore, if you want to take that trip to Weymouth, enjoy some time at the Weymouth harbour, the Bournemouth and Durdle Door Jurassic park or even just sip some local beer with the locals, then equity release is your best bet.