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  • Introduction to Equity Release

Introduction to Equity Release

If you're over the age of 55, equity release offers you a way to use the value of your home to raise money.

It is advised that you seek Independent Legal advice before entering into a legally binding equity release contract.

Why do people consider Equity Release?

  1. To provide an additional income
  2. To provide lifetime gifts to relatives
  3. For home improvements
  4. For holiday home purchase
  5. To fund long term care

You probably have other ideas - there is no restriction on how you use the funds.

However, since equity release can be an expensive way to raise money when taking into consideration payment of arrangement fees or interest, you should also consider the following:

  • Sell your home and live in rented accommodation

    This option involves selling your house and investing the proceeds in income producing investments. The income from these investments is then used to rent a property and for your living expenses. You would only really be able to generate sufficient income to live on if your property was sold for a large sum of money, so this option should only really be considered if your house is worth in excess of £400,000.

  • Benefits entitlement

    Have you checked to see that you are getting all of the benefits you are entitled to? It may be that you are entitled to benefits that make equity release unnecessary. Also equity release could affect your entitlement to means-tested benefits so it's worth speaking to your local authorities to consider these areas first. They may be able to offer you grants or assistance with essential home improvements and alterations that you would otherwise pay for yourself.

  • Your Savings & Investments

    If you have savings or investments you may wish to consider this alternative.

  • Rent out a room

    If your house is sufficiently large you might consider renting out a room to bring in regular extra income.

  • A smaller home

    If your family have grown up and they are off on their own financial journey now, your current home may be too big for your needs and you could consider something smaller and more economical to run. In this case, you could consider purchasing a smaller property, leaving you with a lump sum on completion.

Equity release has to fit with your needs, circumstances and preferences, where the benefits need to outweigh the drawbacks and be more suitable than alternative methods of raising funds.

Equity Release, Lifetime Mortgages & Home reversion Plans will reduce the value of your estate and can affect your eligibility for means tested benefits.

Introduction to Equity Release

If you're over the age of 55, equity release offers you a way to use the value of your home to raise money.

It is advised that you seek Independent Legal advice before entering into a legally binding equity release contract.

Why do people consider Equity Release?

  1. To provide an additional income
  2. To provide lifetime gifts to relatives
  3. For home improvements
  4. For holiday home purchase
  5. To fund long term care

You probably have other ideas - there is no restriction on how you use the funds.

However, since equity release can be an expensive way to raise money when taking into consideration payment of arrangement fees or interest, you should also consider the following:

  • Sell your home and live in rented accommodation

    This option involves selling your house and investing the proceeds in income producing investments. The income from these investments is then used to rent a property and for your living expenses. You would only really be able to generate sufficient income to live on if your property was sold for a large sum of money, so this option should only really be considered if your house is worth in excess of £400,000.

  • Benefits entitlement

    Have you checked to see that you are getting all of the benefits you are entitled to? It may be that you are entitled to benefits that make equity release unnecessary. Also equity release could affect your entitlement to means-tested benefits so it's worth speaking to your local authorities to consider these areas first. They may be able to offer you grants or assistance with essential home improvements and alterations that you would otherwise pay for yourself.

  • Your Savings & Investments

    If you have savings or investments you may wish to consider this alternative.

  • Rent out a room

    If your house is sufficiently large you might consider renting out a room to bring in regular extra income.

  • A smaller home

    If your family have grown up and they are off on their own financial journey now, your current home may be too big for your needs and you could consider something smaller and more economical to run. In this case, you could consider purchasing a smaller property, leaving you with a lump sum on completion.

Equity release has to fit with your needs, circumstances and preferences, where the benefits need to outweigh the drawbacks and be more suitable than alternative methods of raising funds.

Equity Release, Lifetime Mortgages & Home reversion Plans will reduce the value of your estate and can affect your eligibility for means tested benefits.

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Company address: Hartley Hepworth Financial Planning Ltd, Howbrook Farm, Howbrook Lane, Sheffield, South Yorkshire, S35 7EH T: 0114 2848808 E: info@hartleyhepworth.com

Hartley Hepworth Financial Planning Ltd is an appointed representative of Quilter Financial Services Limited and Quilter Mortgage Planning Limited which are authorised and regulated by the Financial Conduct Authority.

Hartley Hepworth Financial Planning Ltd is registered in England and Wales, Company No: 04675658. Registered Address: Howbrook Farm Howbrook Lane, Howbrook Wortley, Sheffield, South Yorkshire, S35 7EH

The guidance and/or information contained within this website is subject to the UK regulatory regime, and is therefore targeted at consumers based in the UK.

Approver Quilter Financial Services Limited and Quilter Mortgage Planning Limited.

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