News
Sep 30
Equity Release Doesn’t Stop Homeowners from Leaving an Inheritance
By Geoff Charles
Homeowners considering equity release can still leave an inheritance for loved ones, says Geoff Charles, Managing Director of Bower Retirement Services.
Many homeowners worry that taking out an Equity Release plan will leave them with nothing to pass on to their loved ones. Equity Release specialist Geoff Charles addresses this issue saying, ‘From experience I have found that most children are more than happy for their parents to release equity from their properties, preferring them to enjoy their retirement. However, I do appreciate that many homeowners wish to leave something to their families; and I will take this into consideration whilst providing my advice.’
Some Equity Release plans allow an amount of equity in a property to be protected so that it can be passed on in a Will. Geoff Charles, who is the Managing Director of Bower Retirement Services, says: ‘There is also the option of taking out a Drawdown Equity Release Plan which involves drawing a small amount initially (a minimum of £10,000) and then further small amounts, as low as £2,000 per time, as and when needed. Because interest is only paid if and when an amount is drawn, this means less depletion of any potential inheritance.’
All Equity Release plans recommended by Bower Retirement Services come with the Safe Home Income Plans (SHIP) negative equity guarantee which ensures that the amount of the loan will never exceed the value of the home and therefore there will never be any debt left to loved ones.
Summarising, Geoff Charles says, ‘If leaving an inheritance is something you feel strongly about, make this clear to your equity release specialist from the outset so that they can tailor your advice to suit your precise needs.’
Bower Retirement Services is an FSA regulated independent financial advice company that offers specialist advice on equity release throughout the south of England. For more information e-mail info@brsequity.co.uk or call 0800 4118668. Bower Retirement Services offers a free, no obligation initial consultation to homeowners considering Equity Release.