Equity Release

Regardless of the inevitable peaks and troughs, the value of property in the UK has increased significantly over the years and the long-term trend has largely been upwards. With continuing under-provision for retirement and property forming (for many) the greatest part of their wealth, raising cash by releasing equity from a home is becoming more and more popular. In addition to this, people are living longer and staying fitter. Consequently, for many who are over the age of 60 and are asset rich but cash poor using their home to provide a source of income is becoming popular.
Increased property prices have also contributed to interest in planning strategies that can help reduce inheritance tax (IHT) without diminishing security and with the owner continuing in rent free occupation of the property.
As for any financial strategy incorporating the assumption of debt, it is essential that a full and rigorous assessment of suitability is made before any form of recommendation for equity release is considered. The client needs to fully understand all the implications and the whole advice process needs to be fully recorded.