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What can you use equity release for?

Article | Apr 2024

Equity release has become a very powerful financial tool for homeowners over the age of 55. This is because releasing equity from your home could enable you to take out a lump sum of tax-free cash whilst still retaining full ownership.

If you are considering going down the equity release route, you should always consult with a trained adviser. At Responsible Life, we have dedicated advisers on hand to provide all the information you need on releasing equity.

By getting the best possible equity release advice, you will ensure that you get the best available deal for your circumstances. This will mean that you get your tax-free lump sum with the best possible interest rate (fixed for life with a Lifetime Mortgage) and can spend your money with peace of mind.

In this article, we will breakdown some examples of what you could use equity release for.

Use equity release to fund a second home

One example of what you could use equity release for is to buy a second home. This can be done to support loved ones and help them get onto the property ladder without having to wait for their inheritance.

You might instead be looking for a holiday home or weekend bolthole, giving you some extra space to enjoy your retirement years. You might even be able to make some rental income on the property in the time that it isn’t in use.

Using equity release funds to purchase a second property means that you can enjoy a more flexible means of remortgaging to fund it. A Lifetime Mortgage offers the option for voluntary early payments on the interest, usually penalty-free up to 10% of the amount borrowed each year, so it could be a cost-effective way to purchase another home.

This is something that Responsible Life’s equity release advisers have helped to make a reality for many people, including a previous customer, Thomas Jackson.

Use equity release to help enjoy a dream retirement

Another reason why homeowners opt for equity release is because they can use the funds to enjoy a dream retirement. It could be that you want to purchase a dream holiday such as a retirement cruise or buy your own motorhome to enjoy many great staycations.

Responsible Life’s advisers helped Steve and Catherine on their retirement journey. They were able to extend their garden to create a luxurious space to spend their summer afternoons. They were also able to use some of the money to help their granddaughters with university expenses.

Use equity release to make home improvements

Finally, equity release funds could be used to make some improvements or renovations to your home. This could be done to help make your retirement years more comfortable.

Some homeowners also have futureproofing in mind, choosing to make accessible changes to their home now to help ensure that it remains a suitable living space far into the future.

Doing this could provide peace of mind to family members who will know you are safer in your home environment.

Need more information on equity release?

If you feel you need any more information about our equity release advisers, schedule a call with the Information Team today! They can answer your questions and help you to book in a free consultation.

Also, check out our free equity release calculator that could help you work out how much money you could release from your property.

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