The Question
I want to take out equity release, but my son and daughter are against the idea.
I am an 82-year-old woman, and my property is valued at £500,000. I would like to release some money invested in my home to improve my quality of life – I struggle to afford nice things, and I am a little worried about heating bills rising this winter.
But my children are concerned for their inheritance. They said for an equity release plan to be agreed, the beneficiaries of my will – ie my son and daughter – must approve, or the application will be declined. Is this correct?
Mark’s Answer
Thank you for your question and I can confirm that during my 20 plus years’ experience of helping customers raise capital for their plans, objectives and aspirations, it is not uncommon for heirs and beneficiaries to become sceptical or cautious when their parents or relatives are considering equity release.
The thought of a loved one selling their home or stripping away all the equity are some of the fears that loved ones still have with equity release.
However, over the last 20 years, providers of equity release have added flexible features to help families dispel any concerns. This includes the Inheritance Protection Guarantee where you could ringfence equity to provide a guaranteed amount in the future for your children, while you enjoy the benefits of some of the equity in your home to enhance the quality of your life.
Additionally, plans now allow flexible voluntary payments which enable you or your loved ones to service the loan and interest and retain a capital balance or reduce the capital balance to ensure that they receive an inheritance.
Assuming you have made a Will, and your son and daughter are beneficiaries, I can confirm there is no requirement for them to ‘approve’ your application and it will not be declined without their consent.
However, it would be advantageous with your permission for them to attend a first meeting with one of our expert advisers who will explain in detail the flexible, positive benefits of equity release, and the risks involved.
Furthermore, our whole of market advisers can explain the options to reduce any risks or concerns your family have by including flexible features such as the Inheritance Protection Guarantee, and Flexible Payments.
From my experience, I know that once loved ones become familiar with the features, options and safeguards available, they become more comfortable with equity release.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
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