It is important however, to fully understand the impact equity release will have on your finances and our experienced team are here to help and support you through the process.
Equity release is a lifetime commitment and to qualify you will need to be over a certain age, this is usually over 55. You are able to continue to live in your house and are loaned the money which will then be repaid from the sale proceeds of your property, either when you die or move into long term care.
There are some obvious benefits from entering into equity release but you also need to be aware of the disadvantages which include:
- The value of your estate decreasing
- The effect on your entitlement to means tested benefits such as pensions credit and council tax support
- The effect of compound interest which means the debt increases significantly over time.
- Potential deprivation of assets if long term care was foreseeable.
Equity release works well for some people but is not suitable for everybody. It is essential that you obtain financial advice on whether an equity release is suitable for you and if so which type of product is the most appropriate.
For expert advice regarding the legalities surrounding equity release, contact our team below.