Should Seniors Release Equity From Their Home?
Should The Equity Rich But Cash Poor Take Money Out Of Their Property?
We know that the UK population is ageing rapidly and we also know that there are many folks who don’t have much in the way of income at all but have a large amount of equity in their property. Now for some of those people, downsizing may be the obvious answer but what about those who don’t wish to downsize – is equity release the answer?
There have been many horror stories about people being scammed by equity release programs and even worse being kicked out of their home due to missed payments.
However, new equity release plans are simply not allowed to do this and is 2014 the equity release market became fully authorised by the FCA, Also, the actual cost of equity release has come down over recent years.
Why Not Downsize?
The obvious answer at first glance would be simply to downsize – sell the home and move into a smaller proeprty; therefore releasing equity which can be used to increase your incom.
However there are other considerations; in particular there is often a very strong emotional attachment to the property; after all this could be a home where somebody has lived for a very long time and often times they simply could not stand the idea of moving out of the place that they have called home for so long
Who Should You Speak To
Make sure that you ensure that you get the right advice from a qualified person. Choose a good Mortgage Adviser and make sure that they are properly regulated .
Don’t forget also to speak to your family when you make your decision; after all your family are the most likely to inherit your property after your death so this decision will also affect them as well as yourself so it is always a great idea to speak with those people who are the closest to you