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Equity release can be an excellent option for homeowners over the age of 55+ to access money. So, what exactly is equity release? This involves releasing some of the value of your property and turning it into cash that can then be used in any way that you wish. Equity release can be an easy and effective way to get your hands on money, but it is also a major decision and not one that should be taken lightly. This post will look at a few of the key benefits of equity release and why it should be considered by homeowners.
The Benefits of Equity Release
1. Tax-Free Cash
One of the main benefits of equity release is that you will not have to pay any tax on any of the money that you take out whether this is a lump sum or in installments. This money can then be used in any way that you wish whether this is to improve the home, plan a once-in-a-lifetime road trip, support the family or simply have some extra money to spend in retirement.
2. No Need to Move House
Many people decide to downsize when they approach retirement as a way to free up cash to improve their situation. While this can be a good option in many cases, you will find that often people do not want to move and it can be disruptive. This is why equity release is a popular option as it allows people to boost their finances from the value of their property without having to move.
3. Enjoying money rather than leaving it tied up
Equity release also allows you to enjoy the money that you have tied up in the property instead of leaving it behind. Of course, there are considerations in terms of reducing the value of your estate if you have loved ones, but equity release can be a great way to improve your quality of life in retirement. Additionally, often using for property development via equity release can help to add value to the home.
4. Avoidance of Inheritance Tax
Following on from this, equity release will lower the value of the estate and this could help to reduce your inheritance tax liability. As you can see, there is a lot to think about with equity release and this is why it is always a good option to speak with a specialist that will be able to help advise you based on your own circumstances.
Equity release can be a great way to get fast access to money, which can then be used in all kinds of different ways to improve your life and the lives of those around you. These are a few of the main benefits of equity release and why it is such a popular option with homeowners aged over 55.