Equity Release Schemes

Equity release schemes have proved very popular in recent years. An expert explains what equity release involves and warns of the dangers of releasing cash from property.
Over the past decade returns on property have dwarfed those to be had from stock market investments and savings.
Some people have seen the value of their homes more than double since the mid 1990s.
It is no surprise, therefore, that equity release has caught on.
Retired people are particularly attracted to using the rising value of their homes to boost their weekly income.
There is now no shortage of schemes on the market promising to help you do just that. But do they deliver
The answer is they can but you will need to do some homework before investing. And a number of people will find home equity release schemes, as they are called, are just not for them.
The schemes differ but essentially most of them work by giving you a loan on the value of your property.
The deal is that you receive the loan as cash, usually on a monthly basis, but sometimes as a lump sum, and continue to live in your home.
Then the company that loans you the money will recover it either by selling your property after your death or if you sell your property - for example to move into a care home.