I am 73, have an annual income after tax of £23,000 and my housing costs have soaredQ I am 73 years old with an annual income after tax of £23,000. My housing costs have soared, partly because of a cladding issue, so I do not have as much spare cash for holidays, theatre, art exhibitions, concerts and so on. I realise this is a luxury problem compared with other’s worries. My four children all own properties, partly financed by my pension lump sum. I have also been diagnosed with a degenerative eye condition, which means my trips to galleries will be truncated. Would releasing some cash via equity release be a good idea? I own my own flat, which is worth about £230,000.RNA I can’t say if equity release is right for you but I can say that it is an option. Because you are over 55 and your flat is worth more than £70,000, you are able to release cash from your home with an equity release mortgage. How much cash you can release depends on your age and the value of your home. According to Andy Vickery, a qualified equity release and mortgage adviser at Money Release who specialises in over-55s finance, at 55, for example, you can take 21.5% of the value of your property; at 70, 37.1%, going up to 50% if you are over 80. Continue reading…
Source : theguardian.com
Read more…I have little spare cash, so should I consider equity release? My flat is worth £230,000
