Home Equity Release
Home Equity Release is a way in which people of a certain again can unlock some value in the home and release some of the equity in the form of a tax-free cash amount for them to spend as they wish.
What ever the plan or the provider you choose, generally speaking it is a long term arrangement whereby the tax free amount you receive will only be repaid (including the interest accrued) when the last surviving person passes away.
There are a variety of reasons why this could benefit you however the main purpose is to simply free up some of the equity or profit in your home for you to spend exactly as you wish in the comfort of knowing that you can remain in your home with the guarantee that you will never be forced to sell regardless of the time you remain alive.
Why do I need an Equity Release Plans?
As the age of the older generation extends more and more it has become very apparent that most of those are 'Asset rich' but 'cash poor' meaning they have lots of value in the property they own but not much readily available cash to spend.
An example might be a couple in their mid 70s living in a house which is worth £350,000 with no mortgage living off of a relatively modest pension and struggling to make ends meat each month.
By simply releasing some equity (or profit) in their home, they would instantly have more money at their disposal meaning they could live more comfortably without the need of struggling.
As this is money that is already yours, it is also Tax Free!
Another example of how equity release could help is that if your assets are at a certain level you may fall into the Tax Inheritance bracket, so by releasing some equity you may be able to lower the amount of assets you have meaning those who will receive your estate once you have passed over could potentially save the higher level of tax that may have been due.
Helping out others - Of course in todays uncertain world no one really knows what is around the corner and something a family member or close friend may need some financial assistance, so if this is the case and is something you would like to do, you can release some money to help with things such as University fees, house deposits or other such occurrences which some of the younger generation might otherwise struggle with.
There are many reasons why you may need to release some equity with an equity release plan however the decision should always be made when you are sure of the commitment it takes and in most cases we would suggest with the agreement and full understanding of your immediate family.
Need a more accurate idea of what equity release plan you may require?
Call 020 3286 3929 or if you would rather, email us at email@example.com or Enquire Here
Please Note: This Kensington Barlow website is a trading style of Exclusive Leads Ltd and is an Introducer only offering free to use websites to help you find the best possible solution to your equity release requirements. We will only introduce you to an Independent and regulated financial adviser who are registered with the Equity Release Council (Formally known as SHIP) and who specialise in Home Equity Release or similar products and use the whole of the market providers.