The term "equity release" has been bandied around mostly since the nineties. Before this, people used to worry more about their retirement security and saved money for most of their working lives. Equity release is not a new idea and basically it means that if you have your own house with little or no mortgage, you can use it to your advantage in your old age, by cashing it in in return for either a lump sum or a monthly income. This money can be used for whatever you wish such as a holiday, car or paying for a daughter's wedding.
You can approach any bank, building society or insurance company or even a specialist firm dealing with equity release. The best thing to do is to ensure that you get as much research done as possible before you commit yourself as this will not only help you to get the best equity release deal, but also ensure that you do not commit yourself to the wrong package since there is usually a high charge for changing your mind later.
The best thing to do is to use the advice of an independent financial advisor or get advice from someone who has been through the same thing themselves. Check all your facts and figures before you sign the Key Facts document which states all the fees and recommendations made. This is mainly to protect both parties and make sure that you do not get ripped off. Most people would say that you should always use a well-known bank or insurance company and added to this I would say that ideally you should go with a company which has been personally recommended to you by someone you trust.
The main disadvantage with these equity release plans is that they ultimately affect your "estate." By this we mean that you will have less to bequeath to your children and other family upon your death. You need to consider this fact because every family is different and has different expectations. Some children expect to inherit all their parents' assets when they die whereas other children wish to see their parents enjoy themselves while they can. This can be either through savings or the use of equity release.
After all, you have worked hard all your life and used your money sensibly so that you can enjoy your twilight years without having to worry about finances. The best equity release deals will give you a good return for your property so that you can get a healthy monthly income when you retire, hopefully enough to cover your daily expenses at a nice level and allow you to have plenty of money left over so that you can finally enjoy the spare time that you will have on your hands. Retirement should be the time of your life when you don't need to have extra stress and worries, but instead have the peace of mind associated with financial security.
You can approach any bank, building society or insurance company or even a specialist firm dealing with equity release. The best thing to do is to ensure that you get as much research done as possible before you commit yourself as this will not only help you to get the best equity release deal, but also ensure that you do not commit yourself to the wrong package since there is usually a high charge for changing your mind later.
The best thing to do is to use the advice of an independent financial advisor or get advice from someone who has been through the same thing themselves. Check all your facts and figures before you sign the Key Facts document which states all the fees and recommendations made. This is mainly to protect both parties and make sure that you do not get ripped off. Most people would say that you should always use a well-known bank or insurance company and added to this I would say that ideally you should go with a company which has been personally recommended to you by someone you trust.
The main disadvantage with these equity release plans is that they ultimately affect your "estate." By this we mean that you will have less to bequeath to your children and other family upon your death. You need to consider this fact because every family is different and has different expectations. Some children expect to inherit all their parents' assets when they die whereas other children wish to see their parents enjoy themselves while they can. This can be either through savings or the use of equity release.
After all, you have worked hard all your life and used your money sensibly so that you can enjoy your twilight years without having to worry about finances. The best equity release deals will give you a good return for your property so that you can get a healthy monthly income when you retire, hopefully enough to cover your daily expenses at a nice level and allow you to have plenty of money left over so that you can finally enjoy the spare time that you will have on your hands. Retirement should be the time of your life when you don't need to have extra stress and worries, but instead have the peace of mind associated with financial security.