Equity Release is not Just for the Over 55s
If you are struggling to accumulate a decent pension and starting to worry about how you are going to fund your retirement, you may have considered an equity release scheme.
Providing you have a property and are over 55, you could qualify for an equity release scheme in the form of a lifetime mortgage or a home reversion plan. Both are pretty straight forward in theory in the way that you borrow money against your house on the premise that you will pay it back in payments or through sale of the house after your death.
If the sound of an equity release scheme is confusing to you, then you could do what hundreds of other baffled people are doing and get your children to look into it for you. According to the big names in equity release, more and more people under the required age of 55 are making enquiries about equity release schemes on behalf of their parents.
So, if like so many people, you are property rich but cash poor, you could turn to your property in retirement with the help of your younger, computer minded off-spring. However, don’t forget that taking out an equity release scheme could resort in your children losing out on inheriting the family home, so tread carefully!
Nowadays the quickest and easiest way to compare financial products such as equity release schemes is through various internet websites that do most of the comparing for you. This is probably what has spurred this latest trend of people under 55 enquiring into equity release schemes, as children agree to help their parents out with the technical and at times complicated processes involved.
Just in case you aren’t lucky enough to have kids wiling to do the equity release shopping for you, here are a few tips:
1) Find out as much as you can – typing ‘equity release’ into an internet search engine, returns a wealth of information, including about Safe Home Income Plans (SHIPs) that come with guarantees that are aimed at protecting you
2) Speak to an equity release adviser who will be able to take your individual situation into account
3) Even if your family are not willing to do the research for you, make sure they are involved and not left shocked at the prospect of never inheriting the family home
4) If you decide to go ahead with a scheme, use a solicitor, like you would for a normal mortgage to help you fully understand what you are signing up for
5) Take your time – this is your house remember, so don’t act lightly
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