In the interesting times during which we live, many people are finding that while they are strapped for cash, they have a lot of value ties up as equity in their home. Faced with the two possibilities of leaving all this value as an inheritance for the kids whilst struggling to maintain a decent life style, or exchanging some of it for an improved standard of living, many people are opting for the latter.
The equity release business has grown at an astonishing rate over recent years, and last year alone it grew by 23%. Also the business has lost its bad boy image and is now fully supported and regulated by the Financial Services Authority (FSA).
Equity release allows older people to stay in their family home much longer than would otherwise be the case. In fact it is estimated that over £600 billion is available to pensioners in terms of equity on their homes. Although property prices have fallen significantly over the last two years, many of these pensioners bought their homes a long time ago for prices that today would barley purchase a reasonably sized garage. Many of these people are struggling to survive on a state pension, whilst their home is worth several hundred thousands of pounds. It is not surprising that more and more professional advisers are steering these people towards equity release schemes.
Of course equity release is not a panacea for all, but for the many that are able to benefit, it can provide a much improved life. Even in cases where older people need long term care, then rather than go into residential care, releasing equity on their home may allow them to pay for private care whilst they remain in their own home.
Of course there are also equity release schemes for the younger person.
Sell Rent Back is a scheme where people can sell their homes then rent them back as a paying tenant, This can be a very useful way of getting hold of valuable equity locked up in your home.
Anyone considering such a scheme should certainly speak to a professional advisor in the field who should be able to comment on whether or not equity release is appropriate as well as putting them in touch with an organisation that can manage the technicalities.
--
If you are interested in the benefits of
equity release for your home, visit the experts at
www.swiftcapital.co.uk to see how much money you could gain!
