Take care of family and friends
Whether it's university fees that you wish to help with or that special holiday to Disneyland, it’s a pleasure to have the finances in place to be able to take care of your nearest and dearest. Your home can present you with a new way to do this…
Do you have loved ones who need help to buy their first home?
If you care about treating or providing for others then you’re not alone. It’s something that 24%* of Key Retirement customers have chosen to do with the money they have released from their homes using equity release. What's more, we've identified that pensioners taking advantage of their property wealth are gifting over £39,350 to family**.
With equity release tax-free cash can be unlocked from your house, and it’s yours to spend as you please. An example includes helping family onto the property ladder. Could the money help you to assist your family and/or friends?
See how much cash you could release
Caring for other people's needs
Although equity release may be taken out with family in mind, it will ultimately reduce the value of your estate.
That’s why, if you wish to leave an inheritance to your loved ones then there are plans available to guarantee this.
Types of plans include, a lifetime mortgage, a drawdown lifetime mortgage and a home reversion.
Equity release plans allow you to unlock cash from your home, a lifetime mortgage is a loan that's secured against your home.
Features of equity release include…
- Tax-free cash
- With some plans you can guarantee your family an inheritance
- Certainty that you can stay in your home for life with ERC approved plans
- A choice of a cash lump sum or cash taken in smaller instalments (typical minimum £2,000) after lump sum
- Remember - Taking out an equity release plan will reduce the value of your estate and may affect your entitlement to means-tested benefits
Customer story - Mrs Stewart
“My daughter was able to be with me for the first consultation and the adviser was very helpful.”
It was a mixture of factors that prompted Christine to consider equity release.
As well as financial reassurance, she also wanted to give her children some money, helping them now when they needed it rather than waiting for their inheritance.
After talking to her family, she contacted a local equity release adviser.
“It was really straightforward” explained Christine.
Christine chose a drawdown lifetime mortgage, which would allow her to access the money as and when she needed it. Equity release has enabled her to help her daughter financially and assist her son with a vehicle for his landscape gardening business.
“Altogether it was a whole round package” summarised Christine, “it was definitely the right thing to do.”
See your loved ones enjoying their inheritance
As with the example of our customer case study, you have the choice to see your family enjoy their inheritance during your retirement.
Equity release could allow you to partake in special moments, like providing children with the means to buy a house or giving financial help to grandchildren attending university.
Request a free guide
To help you understand if equity release is right for you, we've created this free expert guide.
*UK Equity Release Market Monitor Half Year 2016
**Research conducted by Key Retirement. Based on customer data from 2015
If you are considering equity release we recommend that you read is it right for you?