Equity release allows you to unlock money that is currently tied up in your home or property. It is popular for those over 55 years of age who are looking to free up some funds, without having to move home.
With the increased cost of living and people now living longer, it’s no surprise that homeowners are looking for extra ways to supplement their income and maintain a good quality of life.
If you’ve been paying your mortgage for years, you will have built up quite a lot of equity – or perhaps you own your property outright. Equity release allows you to sell off part of your property (20% to 80% of its value) to a lender or bank and receive a large sum upfront which is completely tax-free.
The best part is that you can continue to live in your house until you die or go into long-term care. After that, any money left over is divided between your beneficiaries and the lender so that they can recover all their fees.