Subjects - Your home - Equity release
This is a very popular subject, especially amongst people of advanced years. Very often somebody will find that they live in a big house because they have brought up children in it, but the children have all left and they are now left with a big asset with the mortgage all paid off, but with limited income.
In that situation they have the choice of either selling the house and moving into something smaller and using the balance of the proceeds as an investment that can generate more income, or alternatively entering into an arrangement with a financial institution whereby money is released from the value of the house they are already living in on the basis that in return the financial institution will be repaid that money, either when the owner dies or sells the property.
This can be quite a tricky area and it is important to have good guidance in making the right decision as to what arrangement to enter into, if any, and we can advise you on this.