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. Working with YOU, not just for YOU Tax planning • Profit improvement strategies • Business development advice • Inheritance tax advice • Succession planning • Payroll • Get in touch now to arrange your free consultation www.mageegammon.com 01233 630000 [email protected] 161