So What Is Equity Release?
With Equity Release you can unlock the full value of the equity you have in your home or a proportion of the value. The sum is a tax-free lump and you don't have to move.
The Saga Equity Release Advice Service guides you through the process and helps you decide if it is right for you and your circumstances. For example, equity release may affect your state benefit entitlement, and will reduce the value of your estate. Saga is a transparent company and they explain everything clearly, the pros and cons of releasing the equity in your property. If equity release is not for you, they will also look at other options and there is no obligation.
There are two types of equity release scheme, - a lifetime mortgage and a home reversion plan. A lifetime mortgage is secured against your home, and a home reversion plan, involves selling part or all of your home. Either type could provide you with a tax-free cash lump sum, a regular income or both.
The service is not the perfect service for everyone but it can really help you out if you need access to the money invested in your property.
Saga customers stated use of equity release, some customers used it for multiple purposes July-Dec2015
So I asked my followers on Twitter what they would use the money for if they applied for Equity Release in their home and here are the results.
As you can see, some answers were very similar, home improvements and a holiday being a clear favourite in both polls. Personally, I would use it for a new kitchen and replace the carpets in our home, expensive things to do that I don't have savings for.
You may want to cross off the things on your bucket list like visit the Great Wall Of China
Home improvements may mean that granny annexe for your elderly parents, a new kitchen or extension, and these may actually increase the value of your home. Alternatively, you may feel that it is the right time to do some of the things on your bucket list such as visit the awesome Great Wall Of China, go on an amazing African safari or drive that Route 66 road trip across America you've wanted to do forever. Other people may want to pay off their mortgage or loan debt or give a lump sum to their children for a deposit on their home or to help with wedding costs.
So if you are a homeowner 55 or over, it could be worth you checking out the Saga Equity Release Scheme. What would you use the money for?