For many people, equity release is an excellent means by which to increase and supplement the income received during retirement from a pension plan. If you are about to finish off your life as a working professional and settle down to some years of relaxation, you may well be considering taking on this kind of policy in order to maintain the standard of your lifestyle.
Equity release is, in essence, fairly simple. This kind of scheme is designed exclusively for people in their senior years, and is structured so that it closes only after your lifetime. It allows you to unlock capital that may be tied up in your property, and at the same time, affords you the opportunity to remain living in your home.
Once the policy comes to term, the debt is reclaimed by the lending party when the house is sold. In short, you receive supplementary capital as income without incurring the anxiety of unpaid debt. What is more, this money can be used to assist with a variety of necessary projects – moving house, for example.
Often, in retirement, it is necessary for people to move from their current situation and into an especially designed alternative property. Because this kind of home is expensive, the average pension will not stretch to accommodate it: this is where equity release can help you to upgrade your living situation.
If you do intend to use capital released from your home to move into a new house, it is a good idea to consult an experienced, qualified professional before you do so. This kind of step can be complex, and a little sound advice will not go amiss.