19th January 2016
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More and more I see released equity being used to fund a property purchase by the client or a member of their family, or to pay off an existing mortgage. This allows the resident to remain in their home for as long as they choose to or until death or moving into long term care.
In other cases, divorce is the catalyst. I am seeing parents and grandparents releasing equity in order to fund deposits for children or grandchildren so that they can buy rather than rent.
Parents are also following their children to different areas of the country: this may require them to downsize if the area is more expensive. Equity Release could help maintain their standard of living, even in a more affluent location.
Many people are also buying second homes, both in the UK and overseas, often through retirement lending. Some of my clients are looking to buy a holiday home abroad, you’ll just need to be aware that if you purchase a property abroad this will not be your main home.
Finally, retirement properties, whilst offering enhanced security and quality of life, could often be expensive to purchase from new. In addition, they often feature significant service charges because of the supervision and facilities on site. Some lenders will let you use their Lifetime Mortgage product to buy a retirement property. In addition, a cash reserve facility may be used to fund the maintenance charges, if your income will not cover those ongoing costs.
Family wealth locked up in property is a sensible financial planning asset for the right customer, but as always, because of the uniqueness of every situation and the variety of products on offer, professional advice must be sought.
If you have any questions about the subject matter of this blog, or would like more information on any equity release related point, please contact Kevin Woods on 01489 454545 or contact email@example.com.
Equity release could be the answer to some of your financial questions. If you would like to know more about it, and see if it could be the right option for you, please book an appointment or request a call-back
We will be in touch as soon as possible to arrange a convenient time for a meeting, which is completely free of charge and without obligation.
I'll be in touch as soon as possible. If you'd rather call me in the meantime, please feel free to give me a call on 01489 45 45 45