If you own a house or apartment and are nearing retirement age then you may have considered an equity release scheme. If you have not, and are not familiar with this term, equity release is a way of raising capital from your home without having to sell it up front.
The advantages? You get to live in your home for the rest of your life and have a substantial amount of income to live on. The money borrowed goes back to the equity release company after your death, so you don't have to worry about paying back the money in your lifetime.
This means you have the funds to go on holiday, splash out on meals and can just enjoy your retirement instead of having to worry over every nickel and dime. Relax, have a glass of chilled wine and really enjoy yourself for the first time in your life.
The disadvantages? Well, forget leaving the house or apartment to your children as it will have to be sold to pay back the loan. While many offspring have their parents' home to get them on the property ladder, yours will have to be slightly more independent!
Only you know if equity release is right for you. If you don't have kids or if you are not worried about leaving them your home, then this could be a step in the right direction. This type of finance will not be for everyone, so juts make sure that you full research the subject before deciding on an equity release plan.
