Acumen discusses: unlocking your equity

British homeowners are realising the benefits of equity release in record numbers. The equivalent of £10 million of equity is released from homes every day according to the Equity Release Council, prompting the value of equity release to reach £3.6 billion in 2018. Here, Acumen discusses the current equity release landscape and explains how and when you can release equity from your home.

The equity release market is booming and looks set for even more growth in 2019. Analysts predict that the factors likely to drive this upward trend will be more product innovations, greater flexibility and a broader array of funding options. With more than a quarter of the UK’s population projected to be over the age of 65 within the next half a century, research commissioned by Financial Reporter suggest that retirement lending could exceed £142 billion by 2027.

How do I release equity in my home?

Equity release does exactly what it says on the tin. It enables you to extract equity from your home as a means of topping up your retirement funds. There are two main options available when it comes to equity release. Lifetime mortgages allow you to take out a mortgage and ringfence a proportion of your property’s value for your family. The loan amount and any interest are then paid back when you die or move into care.

The other option is a home reversion, which entails selling part or all or your property to a home reversion provider. This can be paid as regular payments or in one lump sum. You can continue to live in your property, provided you insure and maintain it, and at the conclusion of the plan your property is sold and the proceeds are divided between the remaining owners.

When can I release equity?

When is equity release a good idea? Well, if you’re over 55 years of age and most of your assets are tied up in your home, equity release enables you to extract some of that equity in one lump sum. Which means you won’t have to move house and can retain your independence. However, equity release is a lifelong commitment that does involve some risk. We recommend speaking to an independent financial adviser to discuss the options and potential pitfalls.

Acumen can help you to understand everything there is to know about equity release schemes and how they might benefit your retirement plans. Whether you’d like to learn more about the intricacies of home reversion plans or gain a better understanding of lifetime mortgages, our independent financial advisers (IFAs) possess a deep understanding of the equity release market and can explain the finer points in plain English.

Speak to an Acumen adviser today

Our IFAs are only too happy to discuss the options available to you and offer guidance regarding the best course of action for your individual circumstances. Choosing the right plan for you can be complicated, particularly considering all the risk factors involved. At Acumen, we don’t operate on a commission basis. Therefore, if we don’t believe that equity release is right for you we will say so. It’s as simple as that. If equity release could improve your circumstances, however, we can discuss the best plans available to you.

For more information about equity release, we’ve answered some of your most frequently asked questions about equity release to give you an even greater understanding of this lending scheme. . Our specialists are Phil Jones, based at our Burscough office and Liz Warren who is based at our Pilling office so for lifetime mortgage advice, or to learn how home reversion plans work, talk to Acumen today by calling 0151 520 4353 or email us at info@acumenfinancial.co.uk.