Is equity release the right answer for you? Advice for homeowners

If you have reached a certain age and have managed to cover most of your mortgage, and you are in need some financial support, one solution worth your consideration would be to release equity from your house. Releasing some of the value of your property, without having to move out could be something that interests you at the moment. However, before deciding to actually pursue an equity release process, you should get acquainted with the subject, and learn a few useful details. Here are the pros of equity release:

  Is equity release the right answer for you

Variety of options available

The first factor that needs to be addressed is the versatility you can access when it comes to releasing equity. You can take out a second loan (this being usually the preferred option or the majority of estate owners), remortgage your home, opt for lifetime mortgages or take out a further advance from your current mortgage lender. While you need to research all of the possibilities in this department, in order to make a wise, and a financially useful decision, the fact that you have several directions in which you can go makes thins more convenient.

Tax free cash

Any money that is released from your home won’t be subjected to tax, which means more cash in your pocket, cash you can use however you please. Capital gain tax or income tax won’t be an issue in this situation, this is a detail that has appealed to numerous property owners.

You will avoid moving

Being forced to downsize or to move to another house is certainly not an appealing prospect. The entire hassle of moving itself is something you may currently dread, so seeking an alternative is recommended. Through release equity, you will no longer have to worry about moving. You get to keep your real estate property and stay in your own home.

Financial support

Whether you choose to get all of the money out at once, or you decide to be provided with smaller amounts on a regular basis, as a form of extra income, you have the flexibility of being financially supported in the manner you think would work best for your situation. You’ll have money when you actually need it, so finances wills top being a problem.


Debt won’t be transferred

One last thing you should know on the topic is that you will not owe more money than your home actually values, and the entire debt won’t be transferred when the property is sold. This is made possible through the guarantee of no negative equity.

As you can see, there are a few powerful details that revolve around equity release, which might appeal to you. Because you have various options in this department, you can choose the methods of releasing equity from your property that suits your situation and requirements best. Analyse all of these factors, and decide whether this approach is the right answer for you – the advantages are clear, strong ones, so this might just be the financial solution you were seeking.

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