What are the benefits of Equity Release?

Equity Release allows people over a certain age to unlock the value of equity in their home and provide money to spend on other things. The money is usually needed for the benefit of the applicants or the beneficiaries of their estate but there are very few restrictions on how the funds can be spent.

Some people need money for essential expenditure. It might be their only option for repaying an outstanding mortgage or carrying out vital repairs. This could help the applicants stay in their family home rather than having to downsize and move to a different area. Other applicants are looking for a nicer retirement and use the equity released to provide a more comfortable home or enjoy a better lifestyle.

Many equity release applicants use the money as a gift. For example, it can help children or grandchildren with a deposit to help buy their first home of pay off student debts. These are funds they might eventually have inherited but the gift provides the benefit at a time when it is needed most.

Equity release can also be used to help manage your future inheritance tax liability because the debt that is created reduces the value of your estate on death. The money released still needs o be used in some way and you should ask for specific from somebody who is qualified to advise on tax planning before considering an application.