As you get older, you may come across a time when you need some extra income. With the days of working behind you, there are a variety of ways you can raise the funds that you need.
One solution is releasing some money from the value of your home while you continue to live there. This is called equity release, and there are some benefits that can be enjoyed from it.
If you want to know more about equity release, we’ve curated a list of the pros that come with this choice, so you can decide if it’s right for your family and financial situation.
So, before you ask yourself the question, “how much equity can I borrow from my home?” here are some beneficial reasons you may want to release some equity:
Making Improvements to the Home
Do you need desperate home improvements made to your house, but you are struggling to find the funds to do so? Maybe your boiler has broken down, your HVAC systems are old and need replacing, or you just want to give your home a general spruce up.
Releasing equity from your house is a great way to quickly receive the money to make these changes. It’s your money from your property, after all, so why put it back into your house to make it more comfortable or enticing to buyers?
Paying Off the Mortgage or Other Debts
If you need the money to pay off things such as debts or your mortgage, you may want to consider releasing some equity from your home. Being in debt is an anxiety-inducing experience, so if you have the chance to be able to pay it all off in one big lump sum, why wouldn’t you?
Many people also feel more relaxed and financially free when they have paid their mortgage off. If this sounds like you, equity release might be a sensible solution.
Supplementing Income to Maintain a Certain Lifestyle
Perhaps you don’t need to leave your property to any family when you pass, so your outlook is to spend your money while you are able. Equity release is a great way to supplement income if you want to maintain a certain lifestyle. Who wouldn’t want to brunch every day?
Affording Monumental Events
Just like people take out pensions for once-in-a-lifetime trips or other monumental events that require an extra bit of cash, releasing equity from your home can help you to have the funds you need to support weddings, funerals, epic birthdays, and trips. Antigua, Barcelona, Maldives, Lisbon – the world is your oyster, and you could finally explore it with some extra money from your equity.
Supporting Family
There may be a time when a family member runs into some financial trouble, and you need to help them out. You can release equity from your home to provide them with the money they need right away.
Or maybe you need to fund the wedding of one of your children. Many people have released home equity for these types of reasons, too.
Do Your Research First
Releasing equity from your home is not something to be taken lightly. You must do your research first to ensure that it is 100% the right decision for you. While it has been a blessing to some individuals, not every circumstance is the same, so make sure that you are going into the decision as sure as possible.
And while this list is purely about the benefits of equity release, there are many cons that you should also look into before you go ahead and claim your money.
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