Older couples can use their property to obtain a cash lump sum, a monthly income or a mixture of both. There are various methods in which this can be achieved and the common catch all term to describe this procedure is Equity-Release. Essentially, you will forfeit part or all of your home in order to obtain cash benefits now.
However, the homeowners retain the right to live in their property for the rest of their lives. Are there some alternatives to this which you might like to consider?
Perhaps you live in a large house. You could, quite simply, move to a smaller house or a less expensive area. This may be an unattractive thought at first, especially if you really enjoy your home and you are attached to it. There are many advantages, though. First of all it is straight forward and you will understand what is going on all the time. You will not have to comprehend all the legal detail of an Equity-Release scheme and go through the decision process this requires.
Also, imagine moving into the home of your choice, one which is suited to your needs, will be easy to maintain and keep clean, has all mod cons (you’ll be able to afford it with the excess cash from your house sale) and may even be adapted to any needs you have. Life could become very comfortable and relaxing and it would all happen on your terms. Think about it – I believe this can be a great option for people, and one that is all too often written off when it could give a real improvement to quality of life. You could pay off any debts, have no mortgage to worry about, know exactly where you stand financially and so on.
You could even considered purpose built housing or sheltered accommodation.
Maybe you need to have some repairs of special equipment or alterations to you home because of your age? Check out what is available at your local Council and see if these things can be provided for you. Find your local council here.
You could check out all of your assets and see what could be sold off to raise your cash needs. Calculate your net worth by writing down all of your valuables and deducting you liabilities. You might be pleasantly surprised at what you find! I have placed a simple spreadsheet to help you do so here and you can find a few more similar templates free of charge at Microsoft.
Make sure you have claimed for all of your benefits, especially if its monthly income that is causing the worry. There are Income Support, Council Tax Benefit, Pension Credit, Attendance Allowance and more to find out about. A great place to start is at your Citizens Advice Bureau.
The Home Improvement Trust (HIT) might be able to help if you want to raise capital from your home specifically to pay for repairs, improvements or adaptations.
HIT is a not-for-profit company working closely with local
authorities and local home improvement agencies and it operates the ‘House-proud’ scheme to Aid older homeowners release some of the equity tied up in their home. This money can be used for repairs, improvements or adaptations. You may or may not find that they can help people in your location. A local home improvement agency may also refer you to the Trust. These agencies, also called Care and Repair or Staying Put, can give specialist advice to older homeowners on in getting adaptations, repairs and improvements or carried out. You can locate your nearest HIA on the Elderly Accommodation Counsel www.housingcare.org.
Please contact me by email or telephone if you wish.
Kind regards,
John Higgins