Just like everything in life, when you retire, things might not be quite as clear and perfect as you imagined. Your most thought out plans could easily prove flawed as time goes by. Finances are the trickiest thing of all to plan in advance and, no matter how much you save, unexpected expenses have a way of sneaking up on you. Medical expenses alone can drain your bank account unexpectedly if you are involved in an accident or fall ill.
Reasons aside, many pensioners find themselves in need of financial assistance during their golden years. One great way of sustaining your current quality of life, without taking out a loan or opening a credit card at your local bank, is by applying for an equity release. These plans allow homeowners to use the value of their home to their advantage. A lender will use specific criteria to calculate the amount of money you will be able to release.
The best part is that the funds you release can be accessed in the form of monthly payments or a lump sum. Either way, the amount is tax-free! Unlike credit cards and other kinds of loans, there are special plans that require no monthly repayments.
Once your equity release amount has been approved, you can then use it as planned. Many homeowners use the money to perform much-needed repairs to their existing home. Others use the money to support their monthly bills. There are even those who invest in a second home as well as those who decide to splurge and spoil themselves with the holiday of their dreams. Since you don’t have to move out of your home, you can even hire somebody to tend to your medical and healthcare needs in the home you love rather than being forced to move to a facility.
If you are already retired, and you are finding it increasingly difficult to keep up with the cost of living, take a moment to consider all of your options. Downsizing might sound like a good idea to some, but it involves so much more than simply selling your home and buying a new one. You would have to sacrifice much of your existing furniture and have everything moved from one location to the next. Not to mention the effort of packing it all up! On top of it all, selling your home involves taxes, tons of paperwork, and plenty of patience too. You cannot simply sell your home overnight. These things take a substantial amount of time which is a luxury you may not have.