Equity release is one of the ways that you can get access to a lump sum of money that is tied up in the property that you own. Whether you are planning a dream holiday, or want to add some money to your retirement fund, this is one way that this can be done.
Before going ahead with equity release, you should speak with an independent financial advisor who will be able to talk through your own personal circumstances and help you decide if it is right for you.
You will also need an equity release solicitor who will be able to manage the legal side of the transaction and release the money to you when the process is complete.
It is important to weigh up whether this is the right decision for you before you go ahead – here are some of the pros and cons…
Pros
The money is tax free
You can continue to live in your home, you don’t have to sell up and move to a cheaper property
If you wish to repay it early, there are options that allow you to do this
If you do want to move house afterwards, you still can
Cons
If you are concerned about leaving an inheritance it may be reduced
If you receive benefits, releasing equity may impact this and make you ineligible for some benefits that you currently can claim
Some early repayments may be subject to an early repayment charge so do check this beforehand
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