A home equity release plan may be for you if you are 55 years onwards
. They are designed to release an amount of equity from your home when downsizing wouldn't release enough finances or you simply would rather not downsize at all.
When you are reaching retirement age a tax-free lump sum or increase in income would probably be most welcome and with an equity release plan this is exactly what you can expect to see. What you will receive will depend on the position you find yourself in financially and what is exactly best for you. The opportunities that this pay-out could allow include; the ability to pay for home improvements, the ability to pay off debts, the ability to help out family financially, the ability to indulge in holidays and travel throughout your retirement.
For those considering home equity release the Safe Home Income Plan organisation (S.H.I.P), founded in 1991, has put in place some safeguards that will keep home owners protected. These include; the freedom to move out of the property if you wish, the freedom to stay in the property for as long as you wish and the guarantee of your increased income or lump cash sum.
The amount you will receive from a home equity release plan will relate to your personal situation and home. The best way to get an idea of how much you expect to receive is to seek professional advise from a financial adviser in this area, although there are plenty of on-line calculators that could give you an instant idea... though may not be as accurate. Plus when you speak to a professional face to face you can get further guidance and any other questions answered.
When considering home equity release also remember that the amount of inheritance available in your home will decrease, meaning you will have less to pass on to loved ones. This can be a reason that home equity release is not right for everybody.