The changing uses of Equity Release

While equity release isn't a suitable product for everyone, and requires careful consideration and expertise, it can be used in a variety of situations beyond financing home improvements or holidays, and supplementing retirement income. By broadening their focus, advisers can increase the appeal of the product. The government's social care cap has generated some interest in using equity release to cover the costs of elderly care, but it can also be used to help grandchildren onto the property ladder or education fees, reduce the cash required to purchase a new property and even to help cover the costs of a divorce.

As younger generations approach some of life's biggest milestones, such as entering higher education or buying their first home, equity release can provide a way for grandparents to lend a helping hand. Equity release can free up cash from their property allowing grandparents to support their grandchildren as and when they need rather than in one lump sum in their inheritance.

With the family home often a couples' only major asset, it's regularly a contentious issue in divorce settlement proceedings. While some will be able to use the traditional remortgage route, it isn't always possible, which is where with the help of parents, equity release could provide a solution. The ability to release tax-free cash lump-sums from a property could help to fund the buy-out of one partner from home.

To ensure advisers are aware of all the potential uses for equity release its crucial we equip them with the best possible equity release information. As the elderly population continues to increase and the economic climate remains volatile, equity release is becoming more relevant than ever as a financial aid for older homeowners. 

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