Enable’s IFAs in Bishops Stortford can see that at this time of year spending time in the sun can seem really appealing. If your dream is to live more abroad for the Winters it can sometimes be hard to work out your finances. But there are more and more ways of being able to release money from a UK home using equity release.
Equity release is a form or borrowing for those over 55 who want to get money out of their UK properties without selling. There are two types of equity release in the UK lifetime mortgages and home reversion plans. The lifetime mortgage is not like a traditional mortgage because the homeowners do not make any repayments on the sum they borrow. Instead, the interest due is rolled up and the loan and interest is paid back when the property is sold after their death. Home reversion plans enable you to sell a proportion of the property in return for the cash, and when you have died and the property is sold, that money is repaid from your estate. You retain the right to live in the property rent-free for life, and there is no impact on the way you use your home as a private residence.
The average UK pensioner is using equity release is getting nearly £75,000 from their property according to data from the Key Retirement and as property prices are still going up it only increases the amount available. If you have a property in the UK that is still your main residence meaning you to spend more time here than abroad you should be able to get an equity release loan on that property, according to Dean Mirfin of Key Retirement. Enable’s IFAs can help you think through your options.
Issued by: Enable Independent Financial Life Planners 25c North Street, Bishops Stortford, Herts CM23 2LD • Telephone: 01279 755950 – Fax: 01279 657339 Enable Independent Financial Life Planners is a trading style of Enable Independent Limited is authorised and regulated by the Financial Conduct Authority. It is important always to seek independent financial advice before making any decision regarding your finances. If you would like any assistance, please contact us. NOTHING CONTAINED IN THE ARTICLES SHOULD BE CONSIDERED AS GIVING INDIVIDUAL FINANCIAL ADVICE