Equity releaseAttitudes to retirement are changing; aspirations for today’s retirees are wholly different from previous generations and include travel, adventure and new experiences. However all modern day retirees also have to cope with the much publicised pension crisis, the value of state pensions being eroded, under funded company pension schemes, lower annuity rates and for some, inadequate personal pension planning. As a result many people approaching retirement face the dilemma of their aspirations exceeding their income. For some, the problem is far more pressing with basic needs exceeding income despite supplementary state benefits for the less affluent. Concurrent with the worsening pension income situation, numerous pensioners own property that has soared in value in the last two decades, making many asset rich and cash poor. Equity release offers a solution to this dilemma. Equity is the difference between the value of a property and any loans secured against it and can therefore be defined as the transfer of an interest in the property from the owner to a third party in exchange for a lump sum or regular income. Equity release isn’t for everyone and your individual circumstances should always be considered, however there are some general rules that apply to eligibility:
We can advise whether Equity Release is a viable option for your circumstances and help determine which type of plan would suit you best.
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Braemar Wealth Management (NW) Limited is authorised and regulated by the Financial Services Authority. Braemar Wealth Management (NW) Limited is entered on the FSA register (