A Lifetime Mortgage, the most popular form of Equity Release, needs much consideration. Once you have considered and weighed up all options available, here are the most popular reasons for taking an Equity Release Solution.

Release Equity to Pay Off Mortgage

During your working life, your priority was to ensure your family had everything they needed, such as schooling, family holidays, paying bills etc. Your kids have now flown the family nest, and this mortgage is suddenly hanging over you. Your priorities have changed, and retirement is a consideration!

This is why many opt for a Lifetime Mortgage… retirement freedom! This is ideal for those who don’t need a monthly interest payment and are happy for the mortgage to compound with the knowledge that the future sale of the property will facilitate its repayment.

Release Equity to Pay Off Debt

Much like the outstanding mortgage, it is easy to build up unsecured debts and credit cards. A Lifetime Mortgage will free you from these debts, which can be stressful and cumbersome.

Release Equity for Home Improvements (Piece of Advice Go Green!)

As the Western World sets optimistic targets to become net zero, we must ensure our homes become more sustainable before we are left behind.

Spiralling energy costs are a big motivator to review our homes. Technology is improving, and as time evolves, new products come to market promising to reduce our carbon footprint.

These solutions are not cheap, especially solar, heat pumps etc. It is necessary to balance the cost of sustainability versus potential savings. A further consideration is the asset value of your home once these improvements have been made.

The housing market is changing. Buyers are balancing their options more frequently, and Energy Performance is part of this process. If your home was ‘G’ rated and you are competing against a ‘C’ rated home, it is conceivable the value of the ‘economical’ home is higher than yours.

Governments are planning significant changes, and we worry about homes that are not energy efficient; therefore, many Later Life Borrowers are using their Equity Release funds to make these sustainable changes.

The FAQs on our Green Mortgage page will help understand further sustainable solutions: Green Mortgages – Conran Mortgages (conranfinancial.co.uk)

Release Equity for a Holiday Home

This is far more fun way to spend the hard-earned cash within your home!

Retirement is for enjoyment.

You have worked hard all your lives, and your dream of home ownership in Spain, Portugal, or further afield could become a reality. Imagine waking in the morning and having daily coffee on your South-facing terrace with views over the Mediterranean or golf course. Many do, and, in many cases, it is facilitated by taking Equity from their home in the UK.

Release Equity to Purchase a Buy to Let or Second Property

Much like buying a holiday home, some want to be landlords and gain an income while also giving a “later-Life” career in property.

We advise careful consideration of using an Equity Release product as an investment. Our experience demonstrates that few investment purchases add value when compared to the cost of securing a compounding equity release mortgage. That said, each transaction is unique and having a Later Life expert’s opinion is crucial.

Releasing Equity to pay my grandchildren’s school fees

Many consider this their best investment. Watching your grandchildren flourish gives every grandparent enjoyment. To some, this comes in the luxury of private schooling.

Equity Release can be taken via a drawdown facility, enabling the borrower to take a lump sum in a period of the year (quarterly, annually, or sporadically) to facilitate school fees. Interest is payable upon drawdown and, therefore, can be better when compared to taking a lump sum all at once.

Many borrowers love leaving their legacy whilst they are alive and can see the benefit of their hard-earned monies working for them.

Release Equity to help your family

Let’s be honest; life is tough at the moment. Whether you want to get on the housing ladder or simply look after your immediate family, many later-life borrowers respect the fact they have had the privilege of substantial house price increases and wish to take advantage, ensuring the next generation of their family can benefit.

A Lifetime mortgage will allow this. Many view it as gifting their inheritance whilst still living.

With all the solutions above, it is vital expert guidance is sought. There are tax considerations involved when gifting monies, and if you die shortly after giving monies, Inheritance Tax could be payable. The value of your estate will also reduce, which could have consequences for your beneficiaries.