How to Choose the Right Equity Release
What’s the best equity release for you? That is a question that many people ask themselves when they are considering their financial future. Equity release can be an excellent way to create income in retirement, but there are several different types of releases and each one has its own advantages and disadvantages.
The cost of release depends on the total value of your estate, how much is released and what type of equity release you choose.
The best way to find out which type of equity release is right for you is to consult a financial adviser or solicitor who specializes in this area. There are many factors that need to be considered when deciding on whether an equity release scheme is suitable for you and your family.
Some people like to take a lifetime mortgage which allows them to receive access to their property without selling it but then owing money for the duration of its use. Others prefer a drawdown plan where they can receive monthly income payments from an agreed percentage or amount paid out over time before being bought back by the company making the offer. A third option might be shared ownership in which you preserve some level of control with other investors while receiving regular dividends.
The best way for you to decide if this type of financial instrument would work well for your situation is first understanding all that needs consideration as well as the alternatives. In conclusion, equity release can be a good option for retirement income but it’s important to weigh your options before deciding on one type of plan that might not be right for you.