Should You Apply for Equity Release?
There has been a lot of talk about equity recently but the question remains about whether or not you should consider applying for equity release. Think about it, you have worked hard your entire life, contributed towards society in a positive way and would like to enjoy the time you have off now. Perhaps your savings are not as much as you hoped they would be due to bad investments – you cannot predict the future. Maybe you have fallen seriously ill and are not sure how you are going to afford the care that you need to live comfortably. Regardless of what your reasons for considering applying for equity release are, it is important that you know exactly what you are getting yourself into before you contact a financial institution in order to find out if you qualify for equity release. Below are a few of the most important considerations to get you started:
· Do you have any other savings that you could use instead?
· Are your family members expecting to inherit your home?
· Have you spoken with other people who have used equity release?
o What do they think of making use of the option?
o Which service provider did they use?
o Are they happy with their decision?
· How desperately do you need the money?
1. Do you have any other savings you could use instead?
Your property is probably the most valuable asset you have in your possession right now and it would be a shame if you had to apply for equity release in your golden years. While you still get to live in it, it is a bit of a blow nonetheless. Most experts agree that equity release should only be used if you do not have any other savings left to make use of.
2. Are your family members expecting to inherit your home?
This might seem like a minor issue but it could lead to major fueds which is the last thing you want in your golden years. If you have children who are hoping to inherit your home you need to sit down with them and explain why this is probably not going to happen anymore. Talk to them and make sure that both parties get their feelings across in an open and understanding manner.
3. Have you spoken with other people who have used equity release?
Talking to people who have been through the motions is often the best way to ascertain whether or not this is the right thing for you. Ask them about why, how, who and if there is anyone they can recommend you use. This is particularly important if you live in a close knit community as some financial institutions are better than others at dealing with particular things.
4. How desperately do you need the money?
Wanting to release equity for a holiday abroad isn’t really responsible while needing money for care is a matter of urgency. Skip the holiday but release the cash for the care fees.
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