For a UK homeowner who is 55 or over, it is possible to release some of your equity, without losing ownership, and what’s more, it is tax free. Many homeowners have already taken advantage of this, and have been doing so for many years. Northern Rock were one of the biggest building societies, and they were the main equity release provider of their time. Then, in 2008, the credit crunch took hold, and many providers over stretched themselves, with Northern Rock suffering heavy losses. It was nationalised, and then sold to Virgin Money, and this was a time of panic for many customers who queued outside their branches, trying to withdraw their savings.
A safe and secure transfer
Although Northern Rock changed hands, the customers were always safe and secure, and with Papilio, a JP Morgan subsidiary that is tasked with handling all Norther Rock enquiries, the customers are unaffected by the changes. Papilio are not experienced with these matters, and basically take care of the administration, and it might be that a Northern Rock customer would be much better off changing to a different provider, such as Aviva, or Just Retirement. For more detailed information about Papilio and Northern Rock customers, responsibleequityrelease.co.uk where you can find useful information on all aspects of equity release.
Release your equity when you need it
Sometimes a person has a high level of equity in their property, yet their income is in the lower bracket, and maintaining a lifestyle is difficult, in this case, equity release is ideal, as the homeowner is gaining access to a portion of the equity they have accumulated over the years. This is a tax-free lump sum, or one can opt to receive it in regular payments, whichever you prefer. People in their later years might not want to wait until their mortgage is paid, and require extra funds at this stage of their lives, so, an equity release plan is the ideal way to realise the benefits of many years of equity growth.
The money you receive with equity release is yours to do whatever you wish. There are no restrictions on how the money is used, you may want to take your partner on that once-in-a-lifetime, round the world cruise, or perhaps buy that new car you’ve always wanted. You might want to help your child get their feet on the property ladder, and with house prices the way they are, that is becoming more and more difficult for young borrowers. Using the money to help your family is particularly rewarding, as you can see it at work.
We all like to have a comfortable retirement, so a major home improvement is always a good idea. Many homeowners are seeing the benefits of solar power, and by investing in a system, you are saving a lot of money in the long term. A conservatory will increase the living space, while adding considerable value to the property.
Equity release is the smart way to use some of your valuable equity, and its popularity has grown, as more semi-retired people take advantage of a tax-free lump sum.