Equity Release Schemes Can Offer You a Way of Unlocking a Cash Lump Sum

Equity release can be a costly scheme if you want to preserve as much of your estate as possible to pass on to your loved ones.

However for many people it can be a good idea as it allows you access to a large lump sum of money with no immediate repayment needed.

Can I Get a Tax Free Cash Lump Sum With Equity Release?

Equity release lets you release a tax-free lump sum of cash without needing to make repayments until you die or move into full-time care. Interest will accrue during your remaining lifetime, to be repaid from your estate with the loan.

Equity release is a good idea as it frees up capital to spend without immediate repayments. As with any investment or loan, it depends on your personal circumstances.

Read on to see if equity release sounds like it would be a good idea for you.

Looking for other information on Equity Release? This guide has info on 'Are equity release schemes a good idea?' We have also written extensively about:

• - Are equity release rates falling?
• - Is equity release a good or bad thing?
• - Can equity release be mis-sold?
• - Can equity release be paid off early?

We update all our guides regularly. If you are researching Equity Release and we haven't got an exact guide that helps you, keep coming back as we update daily.

When Is Equity Release a Good Idea?

Equity release is often a good idea if you’re in retirement age and you have a sudden and unexpected need for a cash lump sum, for instance, if you lose your job or you need in-home care that you hadn’t budgeted for.

As it lets you access the money tied up in your property, without the need to make payments back to it until you go into care or pass away, you can use it to pay off unexpected sums or just support you during your retirement.

Also if you’re mithered in debt with unsecured loans, or your mortgage is starting to look less affordable as you think about leaving work and taking up your pension, you can use equity release to pay off your debts and make your ongoing monthly budget much more manageable.

When Is Equity Release Not a Good Idea?

If you already have a large amount of money available to you then there’s no need to look at an equity release scheme loan, since all you’ll be doing is taking the value out of your estate for when you pass away.

Similarly, if you’re living in a home that’s too large for your needs and you don’t have any sentimental connection to it, it can be more financially beneficial to downsize instead. You’ll free up the capital but owe no lender, so the total value of your smaller property will go into your estate to be divided up between your loved ones.

Also, while equity release can be a good idea for anyone aged 55 or over, it makes the most sense to delay it as much as possible. Not only will you be able to take out a much higher value loan, but you’ll have less time in which you’ll generate interest on the loan, meaning that when you do pass away, the amount that needs to be repaid will be much closer to that which was borrowed in the first place.

You might still want to know more about equity release before you decide if it’s a good idea for you. That’s why we’ve put together a wealth of guides on the subject so that you can fully understand what it involves

How Can Money Savings Advice Help You With Releasing Equity?

Here at Money Savings Advice, we have partnered with some of the UK’s leading Equity Release brokers. They have already helped thousands of people get the best Equity Release deal and they can do the same for you.

Choosing an independent adviser means they won’t recommend a scheme unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.

If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.