(Gloucestercitynews.net )(March 27,2020)--Homeownership is something that many of us want to have - and some are lucky enough to achieve that dream. Whether you own a one-bedroom flat in the city centre or a luxury country cottage, you’ll be on the property ladder. What happens if you need access to some additional capital, though?
The solution many people think of doing is to sell their home to get a smaller or less expensive property so they can have some cash to pay for these situations. You don’t have to take this drastic measure, though, as you could consider equity release. Is this the best route for you? Here are some reasons why going for equity release might be the solution for you.
You can improve or expand your property
If your plan means having your family living with you, then you will need to acquire funds to adapt to your current property. This could mean that you extend it to fit your new needs or add improvements to what you have now. You could consider speaking to The Equity Release Experts to find out what the best thing to do is for your needs.
You don’t have to downsize
Being cash poor yet asset rich can affect how you spend your retirement. You might consider moving so you can get some money but, by using equity release, you don’t need to leave the home that you love. You can stay until you choose to move or need to for other reasons.
You can live how you want
If you have a plan for your retirement, then equity release can help you to live the life that you want. So, if you’re going to spend your days relaxing in the sun and going on holiday: you can.
You want to support your family financially
Using equity release means that you can provide your family with a ‘living inheritance’. You can then help them by contributing to costs for bringing up their own family, living expenses, or even to buy a house.
The Office of National Statistics says that 11% of those aged 25 to 34 have had a gift or loan of £500 or more from friends or family in the last two years. It also says 9% of those aged 25 to 44 have had the same.
You have an interest-only mortgage to repay
Equity release can help you if you have an interest-only mortgage that’s due to end soon, and you do not have enough money available to repay the capital. Unlocking equity from your property to pay off your mortgage means you won’t have any monthly payments to make. Any remaining interest will need to be repaid when you move or pass away.
You need a supplementary retirement income
It can be a struggle for those who have retired to make ends meet, especially with steep living costs and low-interest rates. By using equity release, you can boost your retirement income if your pension doesn’t provide you with enough for you to live comfortably.