Equity Release may in the past have been as a last resort, but it is now regarded as a real opportunity for parents to help children while they are still advised.
As has been widely reported in the press many children are either struggling to get on the property ladder or, if they are fortunate enough to have been able to purchase a property, are saddled with large debts. In the past they might have relied on their inheritance to help them onto the property ladder or to clear debt. However, as people are living for longer and as a result the age at which many people might expect to inherit money from their parents has increased significantly.
Parents who own their own home can use equity release to free-up capital locked in their home, to give their children, thereby helping them to get on the property ladder or clear debt. Rather than wait until parents pass away to inherit, children can get the benefit of their inheritance early and parents can have the pleasure of seeing them enjoy it.
Equity Release schemes in the past have had a rather dubious reputation. However, today the reality is very different.
The regulation of these products by the Financial Services Authority gives clients significant protection. In addition, there is SHIP (Safe Home Income Plans) www.ship-ltd.org , an industry association which insists their members MUST include the following assurances:
- a no-negative equity guarantee
- guaranteed tenancy for life
All advisers specialising in equity release must hold additional qualifications before being able to give advice in this complex area. If you have any questions or qureries about equity release, call me now on 0845 029 1962 or mail michael@michaelknightmortgages.com