Make sure equity release is right for you
As with most things in life, it pays to understand something before you commit to it. This is definitely the case with equity release so here are our key tips for anyone considering releasing equity from their home.
It’s good to talk
It is really important that anyone considering equity release discusses it with their family. As property is typically a person’s largest asset, releasing funds from it can impact on loved ones inheritance so it is a good idea to talk about this and ensure loved ones are aware of your plans. Some people discount equity release without even a mere mention to their family because of this reason when, in many cases, loved ones are happy to forgo an inheritance to ensure their parents and grandparents are comfortable in retirement.
Work out your budget
When it comes to the matter of finances, it is always a good idea to see everything in black and white to help avoid red! Do a budget planner, taking everything into considering including regular outgoings as well as things on your ‘wish list’ such as holidays and home improvements, so you understand exactly what you want and need and how much is required to achieve this.
Research all your options
There are other options available other than equity release and it is important that you explore all of them to ensure the decision you eventually make is the right one for you and your circumstances. These include downsizing, the possibility of renting out a room or even turning to family for help.
Talk to the professionals
Should you do all this and still consider equity release to be the right choice for you, you must obtain both financial and legal advice from equity release specialists. Whilst the product is undoubtedly becoming mainstream it does remain somewhat niche and requires detailed financial and legal explanation.
As one of the founding members of the Equity Release Solicitor Alliance (ERSA), Goldsmith Williams Solicitors is highly experienced in the field of equity release and can help explain the legal nature and implications equity release can have.
Content correct at time of publication