Are you over 55, own a home in the UK, but you’ve recently moved abroad? Alternatively, are you considering retiring in a new, exciting location, but you require further financial support to make this dream a reality?
Equity release could be the answer you’ve been looking for, but it’s not black and white. Luckily, John Lawson, a leading equity release expert and founder of UK’s user-friendly information portal SovereignBoss is here to provide insight on how you can make the most of your home and move abroad with equity release. The retirement you’ve been contemplating could come sooner than you think.
Are You Retirement Planning?
Many dream of the perfect retirement, but we continue living day-to-day without building the foundation to reach our retirement goals. But, what’s true is that it’s never too late to start your financial planning journey and save for your future. It’s valuable to get support from a financial adviser, despite cost implications. What you invest in the support will pay off in the long run.
However, if you’ve reached 55 and don’t have savings, all may not be lost. Most UK retirees own a home, and if you don’t want to sell your precious asset, there is another solution. It’s called equity release, and it’s taking the UK retirement industry by storm.
What is Equity Release?
Equity release is a form of later-life mortgage product that provides older homeowners with the opportunity to use the cash tied into their primary residence without having to make any repayments in their lifetime. Instead, the loan and compound interest are repaid from the sale of the home in question when the last owner requires a care facility or passes away.
There are two most widely used types of equity release, a lifetime mortgage and a home reversion scheme. With a lifetime mortgage, you will still fully own your property. However, when it comes to a home reversion scheme, you sell a portion of your home to the lender below market value, and you can live there, rent-free, for the rest of your life.
Can You Release Equity from Your UK Home If You’re Moving Abroad?
Yes and no. Equity release is intended to be unlocked on your primary residence, meaning that you will need to live in the home for a minimum of 6 months a year to maintain your end of the deal.
So, you can use equity release to help fund your move and buy a new home abroad, but only if you intend to live in the UK for 50% of the year. Perhaps a winter in a warmer climate and visiting home in the summer is a fantastic way to spend your retirement years?
However, there is an alternative equity release solution.
Equity Release from a Buy-to-Property
If you own a buy-to-let property, you may be able to gain access to the cash tied into that home, should you be living abroad. A buy-to-let equity release allows homeowners above the age of 55 to do just that. It’s strongly suggested you get in touch with your financial adviser to find out more about the options available for you and your family.
In Conclusion
Equity release is a fantastic product that can change your life, but it does have cost implications that shouldn’t be taken lightly. Therefore, you must get expert assistance and support.
Should you need financial or debt advice, you can consider Step Change, an amazing organisation in the UK that provides advice to those in need.
To learn more about equity release and the best products on offer, follow John Lawson and SovereignBoss. Expert support is just a click away.
