Equity Release – More Than One Meaning
Posted on 11th February 2020 at 13:14
As in many aspects of life, terminology can be seen differently or on the wrong light – Equity Release is no different!
Equity Release is a frequently used term by commercial property owners to release capital from a property to re-invest into another business venture, normally another property purchase.
More recently the term has started to be used to allow the over 55s to access “cash” from their residential property to supplement their lifestyle or repay a debt.
While there may be similarities between the two, the purpose of Equity Release is very different. While one aspect is to allow a business to develop and grow, the other is about enjoying a lifestyle or repaying a debt.
Not all mortgage advisors can provide advice on Equity Release, but here at H D Consultants we are able to address both aspects of Equity Release as our advisors are fully qualified and authorised.
To avoid the confusion caused by the term Equity Release, it would make far better sense to rename the “lifestyle” version of Equity Release as “Later Life Lending” – the description gives a clear meaning on what it is and who its target audience is.
Over the coming weeks, we’ll be covering how Later Life Lending works along with the benefits and pitfalls you’ll need to be aware of.
If this is of interest to you and you’d like a no obligation informal conversation with a qualified advisor, please get in touch with me on 07788 219647 or email firstname.lastname@example.org.
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