insideKENT Magazine Issue 95 - February 2020 | Page 161
Equity Release: Good or Bad?
Sarah Ferrell, local Equity Release Adviser,
spends much of her time talking to people who
are retired, or approaching retirement, and are
considering their financial options.
Despite lots of television and newspaper coverage
there is still confusion as to whether Equity
Release is a “good thing” or not.
Over the years there has been a significant
amount of bad press on the subject, yet now
adverts are encouraging people to use the equity
in their homes to help finance their retirement...
so which is right?
Why do so many people still think Equity
Release is a “bad thing”
The schemes of 40+ years ago were
predominantly “Home Reversion” schemes
which involved selling the property to the finance
company in return for a lump sum. This meant
that any potential inheritance was immediately
lost. Whilst there are still some schemes of
this nature available today, most people opt for
schemes where you retain the ownership of the
property, with the lender having a first charge -
just like any other mortgage.
I have heard I could lose my house or leave a
debt to my children
With the “no negative equity” guarantees
available today, there is no fear of any onward
debt. Equally, as you still own the property, there
is no fear of losing your home.
What if I want to move house?
Most of todays’ scheme are “portable” so they
can be transferred. There are a number of factors,
and potential costs, if somebody is considering
moving, however most schemes are flexible and
can be moved to another property.
Sarah says, “There are massive benefits to Equity
Release in the right circumstances, however there
can be long term implications that clients need to
be aware of. It is important to be clear about all
the factors so we can choose the RIGHT option
for them.”
“I am a great advocate of Equity Release as it has
changed people’s lives when they have been able
pay for Home Improvements that would have
been otherwise unaffordable. It has kept people in
their homes when they felt the only option was to
sell and I have also helped parents release equity
to help their children buy homes or help family
in other ways.”
In Sarah’s opinion, somebody considering Equity
Release needs advice, guidance and information
that is relevant to their particular situation.
“There are so many different schemes available
that it can be confusing without the right advice”.
With 27 years’ experience in finance and over 6
years specialising in Equity Release, Sarah takes
pride in the time and care she takes with her
clients. She is happy to visit your home and she
is not just available 9-5 but will offer flexible
times to suit her clients.
Call Sarah on
07789 007447
01622 631372
[email protected]
www.sarahferrell-equityrelease.co.uk
Mortgages / Equity Release /
Re-Mortgage / Buy-To-Let /
First Time Buyers
Think carefully before securing other debts against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.
Equity Release can reduce the value of your estate and can affect your eligibility for means tested benefits.
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01233 630000
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