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Unlocking the value in your home
2:17pm Friday 3rd April 2009 in Property
Local Estate agents say they are receiving more and more enquiries as to how people may raise finance, as a result of the credit crunch.
Geraldine Hardman, an Independent Financial Adviser (IFA) said: “we are receiving a lot more enquiries from people aged 55 and over asking for details on how to release equity in their home in order to ease pension worries and provide them with a more comfortable retirement.
For the over 55’s the most popular option tends to revolve around releasing equity in their home, knowing that they have money behind them when needed most.
Historically equity release received unfavourable press comment as many of the plans were not regulated and resulted in some individuals being evicted from their homes.
These days equity release schemes have become a lot more sophisticated and innovative with the vast majority of schemes being regulated and come with a no negative guarantee. This means that no matter what happens to property prices your family or estate will never be left with a debt that cannot be repaid by the sale of the property.
An increasing number of people are looking seriously at the advantages of equity release. Changes in the attitudes in the interest rates charged and the flexibility in the products on offer have resulted in an increase in popularity.
For many people this is the right choice and carries with it a number of advantages: Ø Allows you to free up cash without making any interest payments until the scheme ends Ø Enables you to stay in your family home for as long as you want. No negative equity guarantee Ø Plans are available to borrowers as young as 55 Ø You can protect a percentage of the property value leaving some equity to your heirs Ø Schemes available with no early repayment charge which means the mortgage can be repaid at any time without incurring a charge Ø You do not have to have an income Ø You can still move if you wish subject to a suitable property Ø Available for purchase as well as re-mortgage Geraldine also says “equity release is not suitable for everyone and Independent Financial Advice from an appropriately authorised individual along with Independent Legal Advice and involving your family in your plans is strongly recommended.
Geraldine Hardman is an Independent Financial Adviser and Managing Director of Gascoigne Halman Financial Services Ltd.
Gascoigne Halman Financial Services Ltd are regulated by the Financial Services Authority for mortgages, equity release, life assurance, general insurance, pensions, unit trusts and individual savings accounts