Below are some questions that you need to satisfy your self you have answered to the best of your ability as there are alternatives to using Equity Release.
Sell your present property and…
Move into a lower cost property
Rent a property and live on the capital from the sale
Move in with relatives or friends
Ask friends and relatives for financial help
Rent out the property and move into rented accommodation or…
Take in lodgers
Find part-time work to increase your income
Confirm if you are entitled to any state benefits you are not claiming
Discuss the idea of Equity Release with your family
Check if you have any unpaid pensions you have forgotten about.
To be eligible for most schemes you should be aged 55+, have a property that is worth at least £100,000, and ideally be the freeholder. However, flats with long leases are acceptable to some lenders. If you meet these conditions, questions to ask before proceeding to invest in any scheme are:Get your questions about equity release answered.
Does the scheme allow you to move house if you need to? One day you might want to move into sheltered housing or need residential care, or move to be nearer to your family.
What is your life expectancy? People in their 60s and 70s usually prefer to benefit from monthly cash payments. If you are older you may receive less from this kind of plan before you die relative to the value of your home.
What are your family expecting to inherit on your death? The condition of most schemes is that they sell your home when you die. So if you use your property for home equity release you will not be able to leave it to your family, and will reduce the total value of your estate on your death.
Are you living with a younger partner, relative or friend? Depending on the terms of the scheme, they will need to find alternative housing in the event of your death.
What is your eligibility for means-tested benefits? The Minimum Income Guarantee is rising in value and Pension Credit could also be an option. If you receive cash from a home equity release scheme this may cancel out your eligibility for means-tested benefits or help with paying for care.