Volatile stockmarkets and pension problems are just two of many significant facts resulting in potential declines for retirement income. As our life expectancy grows, how can we continue to afford to live comfortably?

Unless we are left money, or our children contribute for our retirement there is normally only one way to raise extra money - through our property.

While Equity Release schemes are not perfect they do offer a way for the older generation to realise capital and then income from the in-built appreciation of property prices. And for some this is the only way in which they can live out their lives with a better lifestyle while not having to move from their current home.

Note that some dismiss Equity Release schemes, instead suggesting people should always move down the property ladder. But a properly thought out scheme can be a prudent and sensible way of reducing the Inheritance Tax burden, which today takes 40% away of any estate over £300,000.

Always Check The Following Facts

When considering an Equity Release Scheme do your homework and have concrete answers to the questions below. It's also critical that you talk your decisions over with a financial advisor and a friend/family member whose opinion you value and trust.

• Find all the associated advantages and disadvantages with each Equity Release plan, and make sure that they are explained to you in detail and in writing
  
  
• Make sure your provider is a member of SHIP
  
  
• Always do detailed analysis of all costs, including -

Interest rates - pay particular notice to the rate charged and how it will move overtime in relation to the official base rate. For example, what if interest rates are now at 5% and move to 10% over the next 5 years. What will this mean to your loan?



How much for the local surveyors fee?



How much is my solicitor going to charge?



What other legal fees will I be charged?



Are there any arrangement fees?



Are there any redemption fees if I want to repay early?



Is it possible to add all the initial setup costs to the loan so not having to make an upfront cash payment?

Good luck in your search for an Equity Release plan. You can find a list of providers in our Yellow Pages.