Equity release over 50 is a way for people over the age of 55 to access some of the money locked in their homes, without having to make monthly repayments. It can be used for things like home improvements, debt consolidation and gifting to family members. There are two main types of equity release scheme: lifetime mortgages and home reversion schemes. Both involve the homeowner selling a stake in their property to a provider and receiving either a lump sum or a regular payment. This means they can continue to live in their homes, and will only have to repay the lender if they die or move into long-term care.
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But despite the equity release industry having come a long way in recent years, with rules in place for providers, advisers and solicitors, it’s still important to be aware of some of the key misconceptions around equity release over 50. For example, research by over 50s experts SunLife has shown that only 6% of homeowners know all the main facts about equity release. This includes that some plans don’t have any monthly repayments, can ringfence money for inheritance and include a ‘no negative equity guarantee’.
If you’re interested in exploring your options around equity release over 50, it is best to speak with a financial adviser who specialises in this area of the market. They will check your eligibility and take the time to understand your circumstances. You should also make sure you use a solicitor who is qualified to advise on equity release schemes and can offer independent legal advice.
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