The equity release method is a tax-free way to get cash from your home for homeowners over 55. It is also known as a lifetime loan, which is a secured long-term mortgage on your house. Some providers offer equity release options such as a home reversion. Once the money is in your account, you are free to spend it however you want, as long as it’s within reason.
Home Improvements
Home improvements are expensive, whether it is for futuristic smart locks on your doors, an extra room for guests or grab bars in your bathroom. As you get older, you may need to make more investments to keep your house accessible. You should explore all options to help you prepare for mobility issues.
Paying off a mortgage, or any other debt
You may be relieved to know that you can pay off your mortgage if there is a balance left on it. If you have a mortgage balance, you will still need to pay that off with the money you receive. If you have any unsecured loans that are not tied to a home, you may want to pay them off as you enter retirement. A lifetime mortgage is an unsecured loan that is secured by your home. Your inheritance will also be affected. For an Equity Release Solicitors Near Me, visit https://www.tivoli.legal/equity-release-solicitors-near-me
Put it in property
Use your lifetime mortgage to purchase a holiday or second home. It could be used to generate a new income or as a smart investment for future holidays. You could buy the other person out of their share in a property that you both own, or extend your lease, if it is a leasehold property.
Travelling around or taking off
Many use the money they have saved to get out of their homes in a variety of ways. You could use that money to buy a car in order to stay independent, mobile and connected with family and friends for years to come. Similar proportions of people spend money on travel, either to visit loved ones abroad or tick places off their bucket list.