Equity Release

As you move towards retirement and away from a regular income, taking stock of finances is foremost on your mind. With your earning days behind you, a comfortable and happy retired life is anchored on pensions, savings, annuities, or as some people discover – equity releases.

An equity release helps you convert your biggest asset – your home – into liquidity or cash. Essentially, it releases the equity tied up in your house. Based on the valuation of your property, the providers agree to pay out a lumpsum or a periodic income (annually, half-yearly, quarterly or monthly) in exchange for the right to sales proceeds of your house after you and your partner die or shift into long-term care. Throughout the term of the agreement, you continue to live in your house.

Because it looks like you are relinquishing rights to your house, a lot of people are skeptical about equity releases. However, a little research will show you that an equity release is actually a very safe and rewarding way of securing finances in your retirement. It can greatly benefit those without a pension or annuity or those with relatively scarce savings. In cases when people are financially secure, they find that an equity release helps them live a luxurious retirement, doing all the things they’d wanted.

Shopping for the best rates and policies is imperative, since you cannot go back on a contract or re-value it. However, there are lots of options out there, and with a good website and some hard bargaining, you’re bound to get all the equity you need out of your home.