Equity release is a way to release funds from a property you own. It’s something that older people tend to opt for when they are rich in assets, but poorer in cash. It isn’t always a preferable option, as the loans are paid back after their death reducing the value of the assets they may leave to loved ones. The options for equity release often come with high fees, again reducing what you’re able to leave behind.
There are, therefore, important aspects to consider before choosing the equity release option. We’d certainly recommend speaking at length to an independent financial advisor before making any irreversible choices.
Fees – One of the most important questions to ask your financial advisor is about fees. How much would the fee be to set up equity release? What is the repayment? Ask your advisor to explain different options and scenarios as alternatives to equity release and compare these options.
Ask Family for Support – Pride often gets the better of us, but families can work together very effectively to solve financial issues, especially where they can seek external advice from a professional IFA. There are many ways to generate income as an alternative to equity release and an independent financial advisor would be able to explore these with you.
Downsizing – We get very attached to the family home, but if it means we’re unable to live a full life by remaining in it, is it worth considering a move? Purchasing a smaller property is highly likely to be a lower cost way to release cash to live on.
Understand Equity Release – Don’t be afraid to ask questions and work through options and scenarios. Ensure YOU can understand exactly what implications equity release has on both you and your loved ones. You should feel comfortable and confident in being able to ask your financial advisor any question. Even if they have to repeat or re-explain aspects of equity release to ensure you understand it, then this is what they will do. Once we move into territories we’re not necessarily qualified in, it’s tempting just to nod our head, even when it seems the person is speaking to us in a language we don’t understand. We’d urge you to take control of any such conversations and make the advisor work for you, so that you can understand what’s happening at all times.
Here’s a way to get further advice and assistance – speak to Thompson Financial Advisors who advise throughout Ipswich and the surrounding areas. They are professional and friendly independent financial advisors offering reliable advice.