Yes, you can use equity release to help support family members.
Equity release is a means of retaining use of a house or other object which has capital value, while also obtaining a lump sum or a steady stream of income, using the value of the house.
“Figures have shown that £3.6 billion of new property wealth was released last year by retirees.” – Kate Saines, What Mortgage
And, the intergenerational transfer for money has been one of the biggest driving factors.
According to data from equity release adviser, Key, the proportion of customers using the money released from their homes to help their families increased from 24% to 27% in 2018.
The equity release market has doubled in size in the last three years. In 2018 Key said the number of plans sold increased by 21% and the amount of value released from these plans soared by 19%.
With popularity for equity release rising there is room for new products to enter the market and with that can come increased confusion. And, although there are multiple benefits to using equity release for family support it is vital that individuals seek advice before making any final decisions.
Speaking to an expert enables families to consider all possible options, including options they may have not known were available to them, to get the best outcomes from a considered approach to retirement planning.