What are the Alternatives to Equity Release Schemes?
Downsizing to a Smaller Property This is one way of releasing equity and avoids any ongoing commitment to lenders. The money released can then be reinvested to ensure that it retains its value, and generates growth or an income into the future. The downside is the upheaval and costs involved in moving house. The question also has to be asked as to whether downsizing will release enough of a lump sum (minus the costs of moving) to provide a realistic amount to live on for any long-term period. Selling Part of Your Home to a Relative or Friend You might be fortunate enough to have a relative or friend prepared to remortgage their property to buy a proportion of your home. This effectively becomes a private equity release arrangement, whereby the relative or friend passes on a lump sum in return for a loan to be repaid when the borrowers home is sold or he/she no longer permanently resides there. In such a situation, it is important to agree exact terms and seek to get a binding contract
