More and more people in the UK are starting to use the value built up in their home to help them enjoy a better retirement. Modern equity release plans are more flexible and those backed by members of the trade body Safe Home Income Plans (SHIP) offer a guarantee that you will never owe more to the product provider than the value of your property.
Members of SHIP, which includes Just Retirement, have to comply with a code of practice designed to protect customers.
What Is Equity Release?
Equity release enables you to unlock money from your home while you still live there and you do not have to make any repayments until the property is sold either on your death or when you move into care. An equity release plan can provide you with access to cash lump sums, a regular income or both.
To qualify for an equity release plan you must be over a certain age (60 for Just Retirement’s products) and own your property.
Careful consideration
Equity release is not necessarily suitable for everyone, so we recommend that you always consult a financial adviser who is qualified to advise on the products.
As it is a lifelong commitment, we also recommend that you involve your family in the decision making process as releasing money from the home will affect the amount that you will be able to leave them when you die. Taking out equity release may affect your tax position and entitlement to state benefits.
Equity release provides a way of securing extra funds during your retirement. It enables you to unlock money from your home whilst still living there and you do not have to repay any of the money borrowed until the property is sold either on your death or when you move into a care home.
To qualify for an equity release scheme you must be over a certain age (60 for Just Retirement’s products) and must own a property.
Your home may be the most valuable asset you have, and enjoying the benefits of being able to take cash out of it can make a huge difference to your quality of life in retirement. An equity release scheme can provide you with access to cash lump sums, a regular income or both.
Equity release is not necessarily suitable for everyone, so we recommend that you always consult a Financial Adviser who is qualified to advise on equity release. As it is a lifelong commitment we recommend that you involve your family in the decision making process because releasing money from the home will affect the amount that you will be able to leave them when you die.
Additionally, make sure that you deal with a provider that is a member of SHIP (Safe Home Income Plans). Members, which include Just Retirement, have to comply with a code of practice designed to protect customers.
They guarantee, amongst other things, that you will never lose your home – regardless of what happens to stock markets, interest rates and property prices – and that you will never end up owing more than its value.