Property: One asset, many uses
More people are now looking beyond pension funds and investments to fund their retirement.
Treating property as an asset class and unlocking some of its wealth could help make clients’ retirement goals more achievable.
Lifetime mortgages can be a solution for a variety of financial needs. However it’s important to remember that gifting money can be subject to inheritance tax and using equity release to repay an existing mortgage or debts could cost more in the long-term
Gifting an early inheritance
By leaving a ‘living inheritance’ to their loved ones, clients can experience the positive impact it has on their family and friends’ lives.
Read Christopher Spencer's story to see how it helped him provide an early gift to his children, whilst protecting his inheritance value.
Clearing an existing mortgage or consolidating outstanding debts
Releasing cash from their property could help clients to clear their outstanding debts, so they can enjoy their later life with less financial stress.
Learn more about how lifetime mortgage options can help manage the build-up of debt here.
Releasing the financial squeeze on the ‘sandwich generation’
Clients could use the cash unlocked from their property to ease the burden of providing financial support to their children and elderly parents.
Boosting retirement income when fund values fall
Taking money from investment funds when values are fluctuating can expose a client to sequencing risk. Unlocking a property’s equity instead could provide the money required, until investment markets recover or a new strategy is adopted.
It's important to remember that equity release is a long-term commitment, is not right for everyone and it will reduce the value of the client's estate.