Life post retirement can be full of compromises. With lower retirement income, individuals may face difficulties in managing their monthly expenses. This is when equity release could be a good option. With equity release plans, retired individuals can free up the cash locked in their property.
To be eligible for equity release, the youngest applicant must be a minimum of 55 years of age attained. It must be registered in their name & be the main residence.
Preferably the applicants should be the sole occupants; however should anyone else be living there, then an occupancy waiver from will require signing. This will waive the lodger’s rights behind the applicants & the lenders so that the lender can still & push for sale should both applicants die or move into long term care.
Some benefits of equity release:-
– Get a regular income or a cash lump sum
– No need to pay monthly rent on your property
– You can continue living in your home for life
Different equity release plans are now available to suit your preferences and needs. Lifetime mortgage equity release and home reversion are the most popular plans available today.
Another benefit of equity release is that it allows you to spend money the way you want.
Many people use the money obtained from equity release for:-
Travel or a holiday
As the money obtained from equity release is tax free, it can be used to fulfill one’s travel aspirations such as cruises or maybe visiting distant relatives. How else can one fund ambitions such as travelling the world on retirement income alone? With the increasing cost of worldwide travel including travel insurance for the over 60’s further finance is often required.
Make home improvements
Post retirement, many people still wish to improve their home. Altering the garden or adding a conservatory are common things that people do. Furthermore, as retirement progresses additional mobility or disability facilities may need to be implemented in the property. Unless benefits or grants can be obtained then the full costs of such improvements will need to be met from savings or by releasing equity from their home.
Depending on your needs, you can use the equity release money for any of the above purposes…& more.