Equity Release – want or need? – Karen LastMarch 1, 2018 12:50 pm
Those considering equity release will generally fall into one of two categories….
Firstly, they need the money for regular or occasional expenses, and have no way of finding that money elsewhere.
Secondly, they want to use the money built up in their home before they pass on.
(It is useful to note that clients can borrow funds for any legal reason, even business purposes.)
Clients in the first category often have no choice. Happily though, I have seen clients’ lives transformed by the removal of financially-related concerns.
Money has been released to:
- Pay for live-in or residential care costs for themselves, or their spouse.
- Clear maturing interest-only mortgages where the endowment policy has not been sufficient to clear the mortgage completely.
- Cover day-to-day expenses after the death of a spouse, due to reduced pension income.
- Pay for medical treatment or essential adaptations to their property.
- Clear expensive credit which built up during their working life.
Clients in the second category generally have large homes, reduced income and either no children or children who are wealthy in their own right, with no need for a significant inheritance.
These clients tend to borrow money to maintain a standard of living they enjoyed when they were working, so often use funds to:
Continue with the lifestyle they had when at work. For example, regular new cars, expensive holidays, golf memberships, home improvements, and entertaining. Equally, they may choose to withdraw funds to help children going through divorce, to buy a home or to fund grandchildren through university.
If you would like to know more, please do contact me for confidential, impartial and honest advice without any obligation. Call Karen Last on 01473 730090 or email firstname.lastname@example.org.