If you are retired and living in a home that you wholly own, you might want to consider releasing some of the equity as part of your retirement financial planning.

Equity release plans, lifetime mortgages, home reversion or home income plans are a way of releasing cash by borrowing money against the value of your home, with the debt being repaid from the sale proceeds after your death.

You should not enter into an Equity release plans lightly; they can be complicated and are a major financial decision: Your home is almost certainly the largest asset you own. Good, considered advice is essential. Both Age Concern and the Financial Services Authority recommend getting independent financial advice before proceeding.

The Independent Financial Advisers at ARK will look at your overall finances to see if equity release is really the best option for you, help you find the right type of scheme and make sure you understand any implications to your state benefits and tax or any risks to your asset.

Equity Release plans can give a lump sum, a regular income or both. The lump sum could be tens of thousands of pounds; the income boost might be worth as much as a hundred pounds a month or even more.

With reputable equity release schemes there is a rock-solid guarantee that you will be able to continue to live in and enjoy your home until the day you die – and in many cases still be able to leave something of the property’s value to your family.

Of course, if you don’t have children or family to leave your property to, then equity release might seem an even more attractive concept.

Equity release will not suit everyone. It is always worth considering whether funds could be raised affordably from other sources before going down this route. For straightforward money advice from the independent financial advisers at ARK Financial Planning call on 0161 303 9977 or email us for no obligation, stress free equity release options and advice.

Types of Equity Release schemes.

Home reversion schemes.

You sell your home or a share of it to a reversion company for a lump sum or in return for a monthly income (or a combination of both).

Interest-only mortgages.

You borrow a lump sum secured against the value of your home. You pay interest each month, but you have a lump sum to spend as you wish. The capital is eventually repaid out of the sale proceeds.

Lifetime mortgages.

The lender gives you a lump sum or monthly income (or both). You pay nothing – the interest is ‘rolled up’ into the loan. The amount borrowed plus this interest is repaid out of the proceeds from the sale of the property after you die.

As an independent financial planning practice offering a free no obligation initial consultation, what have you got to lose? Looking after your retirement investments is what ARK does best: Take one step towards achieving your lifetime financial goals and talk to one of the planners at ARK Financial Planning without delay.

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