It is a financial quandary that faces many. That of being asset rich but income poor. Is it best to use Equity Release or to sell the family home and downsize to raise funds? Equity Release is not just a financial decision but an emotional one.
There are many reasons that people consider Equity Release unfortunately not all being sensible. e.g. Paying off the grandchildren’s student loan debt is a very fine and generous gesture but in almost every case a poor use of cash released – there are, in most cases far better ways to help your grandchildren.
As I speak to advisers they tell me that the main driver can be the children whose influence can sometimes be ill informed. This is just as often in encouraging the use of Equity Release when it is inappropriate and better solutions exist as it is in cases where Equity Release could transform the lifestyle of an elderly parent and they refuse to see the benefits.
The first decision you need to make is what would you prefer? To downsize or take out an Equity Release loan. Is your property expensive to maintain? If you are a couple could one of you manage to live there on their own? Are you concerned about residential care fees? Do you need or want to stay in the same area? Many of these factors are not financial decisions but practical and pragmatic ones. When you have considered all these factors you should then seek expert advice to see if what you want is possible or makes financial sense.
Press Articles on Equity Release Advice
I have included some links to Equity Release articles from a variety of sources in the national press and other web sites. Please click on the Article Links tab to visit read more. The one common feature in all that write on this subject is that this is a complex matter and one that needs expert advice.