You might be in need of an extra source of income now that you have retired. You might be looking for a way to raise money to finance your needs or the needs of your family. If this is true, then you might just be in need of equity release. Equity release allows you to raise money against the value of your home or property. Equity release is ideal for people in retirement who own a property and does not have a mortgage on it. In such cases, they have equity but it is tied up in their property. With equity release schemes, they are able to release the money that is held up in their property.
One of the most common uses of equity release UK is the funding of education. Older parents who still have children in college or university can use the funds released from their property to pay for the education of their children. Grandparents can also use the money they get from equity release to pay for the education of their children.
In order to qualify for equity release, a person needs to be above 55 years and must own a property. It is better if there is no mortgage on the property but if there is, it will be paid off as a part of the equity release scheme. In essence, equity release is borrowing money against the value of your property. This money is paid back through the sale of your property which would normally take place after your death.
Before you make the decision to release equity from your property, you should seek financial and legal advice. You should always consider if there are other options available. The implications of equity release are many and will affect each aspect of your life. For example, how will your children react to this? In essence, you are borrowing against their inheritance. If they are not able to repay the amount you borrow, they will lose their inheritance.
If you do decided that equity release is the best option for you, you are then able to obtain a lump sum amount or you can agree for regular withdrawals.