Most homeowners will gradually build up equity in their properties while living there. From rising house prices to the capital repayments made on mortgage policies, the amount of debt secured on a property should decline with every passing year. This increases the level of equity provided by ownership of the property, even though this potential is often inaccessible – tied up in bricks and mortar.
Equity release describes the process of generating cash from an owned property, releasing one or more tax-free cash lump sums that can be spent on practically anything. There is no impact on an owner-occupier’s ability to continue living in the property, although equity release will obviously reduce the value of any future inheritance left to descendants. Nevertheless, equity release can help people to remain in a property they otherwise couldn’t afford to continue living in; it can also help with everything from clearing historic debts to fully enjoying retirement.
Select Investment Managers understand that the decision about whether equity release is right for you is an important one, as such we will refer you to an expert. It involves a variety of considerations, from the impact on inheritances through to an analysis of current cash flow levels and our advisers appreciate that equity release may not be the right solution for everyone.