Inheritance now, not later:
Many people these days are using the Equity that they have spent many years paying for in their home, to allow their children their inheritance when they actually need it.
Years ago life expectancy was the 3 score years and 10, meaning that the children would have been mid 40’s and perhaps just setting children up in university, etc. These days when we die, our children may be in their 60’s, not really needing an inheritance, so have we missed the boat?
By taking Equity Release, a high percentage of applicants have the reason for helping children or grandchildren get on the property ladder, as they can provide the much needed deposit (on average 10-15% of the house value needed) to be able to get a home of their own. So why can’t they wait and save, I hear you ask? By getting them on the housing ladder earlier, the house prices are more likely to be lower than in 3-4 years’ time, the rates are low on mortgages at the moment and they have a longer time to make their mortgage payments, making a mortgage more affordable.
Equity Release can have the interest paid, by either the Equity Release applicant, or we have had the children/grandchildren pay this, so that in effect they have a 100% mortgage. Times are changing and these days Equity Release has all the protection applied to make sure you keep full ownership for the rest of both lives and that the family will never owe a penny themselves. Advice is paramount in making a decision whether this is not for you or not, but as long as you are over 55, own your home of value of over £75k, you can at least research this possibility.