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Age Concern Brighton

Equity Planning In Retirement

Be smart on your assets!

All we have that is of economical wort has cost us - or someone before us - time, effort and energy. All we own has been earned, and for that reason, we should be able to make use of it and enjoy the benefits of having it. For many people, the most valuable asset that they have is their own house. It has cost them dearly, and there is a high chance that they had to spend years paying for its mortgage, working every month to gather the money for the monthly fees, and perhaps in some cases fighting against the chance of repossession or payment failure.

Being able to inhabit your house and call it your own is a huge thing because of all of this. However, we would like to point out that you can do even more with the value of your property. By this, we don’t mean that you should sell it or let it - which you can do, but the problem there is that you would need another place to live, and in case that you offered it for rent, you may always be concerned about how your tenants are treating your property. Instead, we want to discuss the many advantages of a very specific financial scheme that allows you to turn the value of your home into cash with no other immediate repercussions. Introducing equity release, a financial scheme Federal Reserve that has been rising in popularity for the last years and doesn’t seem to stop any time soon. 

Why do people choose to make this sort of deal, once and again? Why do thousands of elder men and women decide to engage in equity release?

Advantages of equity release

The purpose of releasing equity is to be able to enjoy and use some extra cash during your retirement SEC, and you can use that money for several purposes. For some people, it’s a great way to pay up bills and have economical stability for the last part of their lives. For others, it allows them to boost their retirements, covering the expenses for travel and entertainment. In some cases, this equity is used for home improvement, thus rising the value of the property - this makes this deal an actual investment for the benefit of their heirs. 

An equity release deal has some advantages over mortgages, loans and other sorts of financial maneuvers. Here are the top reasons why equity release is a very convenient financial scheme.

It allows you to live in your own house for as long as you want. You don’t have to sell your property until you move to long term care of you pass away. In some schemes, you are the titular owner of your property, when in other cases you are more like a tenant which doesn’t’ pay any rent. However, nothing changes the fact that you inhabit your own house and that nobody can kick you out of it if you don’t pay.
Equity release is more accessible than mortgages or other sorts of loans, and the eligibility criteria are much easier to meet in these cases. Also, equity release rates are often much lower than those of a typical loan or mortgage deal.
All the money you get from an equity release deal is 100% tax-deductible. This makes it even more tempting when compared with other sorts of loans.
As the terms and conditions for equity release are usually much more accessible than other mortgages, you can use an equity release deal to refinance your home and get relieved from interest payments.

Where to find more information

Just as all financial schemes, there are different sorts of equity release deals and each one of them is more convenient for some cases, but not for others. You should learn more about these schemes and pick the one that best suits your interest. Find a qualified financial advisor and get informed about your options. 

Here are some online resources to help you with your research:

What is a Pension Equity Plan? is a very complete webpage on equity release deals. This is an equity release dealer, but also a very good source of information. Here, you will find good articles about home financing shcemes.

What is a PEP? is another great place for those who are just getting started with equity release schemes. It has very clear information and an excellent orientation team. You can just call and ask for advice and they will provide it. 

You should also use the NatPenCon to get an idea of how much money you could release from your property, based on a few characteristics and your own age.


At ageconcernbrighton-hove,org.uk we can help you live a better life

Equity Planning In Retirement

Equity Planning In Retirement


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Age Concern Brighton, 17 -19 Euston Road, Morecambe, Lancs, LA4 5DE.

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