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16th Oct, 2021

How could equity release be beneficial for seniors?

Droitwich Editorial 30th Sep, 2021 Updated: 5th Oct, 2021

As we age, our ability to work and live independently diminishes.

This is because of the natural aging process which causes changes in our physical abilities, cognition, and emotional responses.

It’s not uncommon for seniors to experience health problems that limit their mobility.

For some seniors, this can mean losing lifelong friends or having to move out of their homes they’ve lived in for decades.

Thankfully, there are ways that can provide seniors with a way to stay in their homes while still maintaining financial security later in life!

If you’re one of these people, then could equity release be beneficial for seniors?

In this article, John Lawson from Sovereign will tell you everything you need to know about it!


The benefits of equity release

The idea that homeowners can borrow against their home, or sell it to fund their retirement, isn’t new.

However, because of the shift in demographics and increased life expectancy rates, more people are considering could equity release to provide financial security for themselves and their families.

Here are some of the things that you can use with your equity release money:


1. Boost your retirement funds

Let’s face it. Time in retirement can be one of the most relaxing times you’ll ever have, but with medical advancements like living much longer than we used to and fewer or no cares for our golden years now might just come sooner than expected.

Allowing yourself more freedom financially is a great way not only make sure that when work ends there will still always enough money coming through.


2. Decreases your debt

No one likes to be in debt, but for some people it can feel like the only way they will ever get ahead.

There are many different types of loans that could help you pay off your debts faster and with less interest than what was charged by creditors originally.

These include equity release plans like using rental properties as collateral on bank loans or consolidating credit cards when payments have been made over time at lower rates than those offered by original card holders thus freeing up cash flow too.


3. Buy your second home

Buying a second home can be expensive, but there are ways for you to invest in homes without having all the cash up front.

Equity release is one option that many people use when they retire and need help accessing their equity before they own it outright- this type of financing gives them access through payments or loan amounts based on how much property value has been released from an initial purchase price with no monthly mortgage costs involved.

4. Home improvement

A home improvement using equity release might be the perfect idea for people who have been living in their homes for over 20 years and want to make it feel fresh.

You can take advantage your house value by borrowing from it without having to sell or trade anything.


5. Luxurious vacation money

As a senior citizen, you may have been afraid to take the plunge and start planning for your dream vacation.

But now that fear is gone because equity release can help make those trips become reality without breaking any bank accounts.

You’ll be able use some of what was originally set aside just so someone could live at home longer.

In this case it will let them travel while enjoying all sorts of accommodations like hotel rooms as well food expenses if needed.

Many people are looking for ways to improve their standard of living and quality of life as they age.

One way that many seniors choose to do this is by using equity release loans, which allows seniors to unlock the value of their home without having to sell it.

This means that they can still live there and enjoy all the benefits of homeownership while also accessing funds for retirement or healthcare costs.

If you are considering this option, it’s important to understand all aspects of equity release before proceeding with any decisions.

Your financial advisor will be able to help provide guidance on whether or not equity release makes sense given your situation.

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