4 Key Equity Release Questions - Must Read!4 Key Equity Release Questions - Must

Equity release for many of the older generation can be a nightmare if they're not setup and researched properly. This is not meant to scare because Equity Release done right can offer major benefits. But RESEARCH and UNDERSTANDING are the key. Thankfully not only is the government planning to regulate Equity Release but institutions such as the Actuarial Profession have come out with guidelines in a very detailed report - Click Here for more details (PDF - opens new window) An Important Point Reading between the lines of the report the Actuarial Profession are not the greatest fans of Equity Release and do mention that 'trading down' (selling a property for say £250k, moving to a property worth £150k and utilising the cash windfall) for most people is a far better plan of financial attack. Basically by trading down you remain debt free. TOP EQUITY RELEASE SEARCHES Equity Release Providers
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    The Actuarial Professions 4 Key Equity Release Guidelines
    1. Consider all the other options to equity release, e.g. have a "benefits check" to see if there are any state benefits they are entitled to but not claiming; investigate trading down, use of savings, or the sale of other assets
    2. What is your view on leaving any major inheritance. Equity Release is likely to leave no value in your property to bequeath to your family so always involve them in any financial decisions
    3. Seek advice from a properly qualified advisor and make sure the advisor has considered other alternatives. This point is CRITICAL and the report on page 5 goes into more detail so make sure you read it - click here - PDF - opens new window
    4. Make sure you fully understand the contract you are entering into and before committing go to an independent solicitor to have the legal contracts fully explained. Again more detail on page 5 of the report - PDF - opens new window