Options for funding retirement

Our retired citizens, as they age, are beginning to be concerned about the pensions they have paid for and the changing goalposts of the state pension despite the triple locking. The cost of living is rising and pensions are not keeping up with modern costs. The cost of care for the elderly is also increasing as dementia and Parkinson’s disease become more prevalent. Alternatives are being sought in order to have extra money for the later years.

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Equity release allows you to generate income from your home. This is essentially a new mortgage. It may seem strange to get a mortgage after paying off one that took you most of your life to pay. It is important to carefully examine each option and determine which one suits you best. You will most likely still be the owner of your home, not the lender. Or you may own it in its entirety with only a small percentage owned by the lender. Remember that the value of your house determines the amount you are able to borrow. If your home is worth £100k, and you borrow £25k you will have a loan-to-value of 25%. For help from an Equity Release Solicitor, visit www.tivoli.legal/

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Equity release schemes are usually based on the principle that you own your home, but you take out a monthly loan. You may not pay any money back or only pay the interest. The amount borrowed is still due, but you can repay it by selling your home. The amount borrowed will be deducted if you sell your property, go into full-time care or die.

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