Is Equity Release a Better Option Than Downsizing?

Are You Deciding Between Releasing Equity & Downsizing for Your Retirement?
Contributors: Nicola Date, Katherine Read. Reviewed by Francis Hui
Are You Deciding Between Downsizing and Releasing Equity? Discover the Key Considerations for Each Option and if You Can Downsize With an Equity Release. Find Out Which Is Best for You Here.

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Still deciding if equity release is a better option than downsizing?

Well, there’s a reason why more than a whopping 76,000 equity release products were unlocked in 2021! Could you be next to join the masses and access property wealth?

What You’ll Learn in This Article:

    Our dedicated team of equity release experts have studied the market and mapped out what you need to know about these 2 options for your retirement.

    Here’s what they found!

    Do the Majority of Borrowers Find Equity Release to Be a Better Option Than Downsizing? 

    Yes, the majority of borrowers find equity release to be a better option than downsizing, especially in recent years. 

    This is proven by the record-breaking equity release numbers from 2021.  

    What Are the Benefits for Borrowers Opting to Downsize?

    The benefits for borrowers opting to downsize include:

    • Access to funds from the sale that you can use on other things, while still being a homeowner. 
    • Less property expenses because of reduced maintenance and upkeep when you move into a smaller home.
    • You can move to an entirely new area that you may have been eyeing for your retirement.
    • Your heirs can inherit your new home from you.
    • Starting afresh and clearing any clutter to accommodate your smaller home.

    Before You Keep Reading….

    Let’s See How Much You Can Release 👇

     

    Equity Release Calculator

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    So, Is It Better to Do Equity Release or Downsize?

    Yes, it’s better to do equity release over downsizing if you aren’t too concerned about leaving an inheritance for your heirs.

    There’s also an emotional element to consider.

    Equity release is the better option if you and your family have an attachment to your home because of the memories created over the years.

    Equity Release vs Downsizing – What Are the Key Considerations?

    The key considerations, if you are deciding between equity release and downsizing, are:

    Inheritance Implications

    Releasing equity from your home will reduce the inheritance you leave behind for your heirs.

    If accessing funds immediately is more important than the inheritance implications, then equity release may be your best bet.

    However, if your heirs are to inherit your home, then downsizing to cut down on costs and property expenses may be the better option for you.

    Attachment to Your Home

    One of the main determining factors of whether you should downsize or opt for equity release is your attachment to your home. 

    For some, their home is sentimental and carries many memories, which could make it difficult to downsize and start afresh elsewhere. 

    The Property Market

    Depending on your appetite for the property market, you may think twice about downsizing.

    The process of buying and selling your home can be long and stressful, and you may not want to endure it in your senior years.

    Common Question

    Can You Downsize With Equity Release?

    What Happens to Your Mortgage When You Downsize?

    Can I Sell My House if I Have Equity Release?

    Are There Alternatives to Equity Release?

    In Conclusion

    There’s merit to both equity release and downsizing to unlock capital for your senior years, which are just 2 alternatives you can explore.

    While there are pros and cons to both options, you need to keep the key considerations in mind as a way to guide your decision-making. 

    In a nutshell, equity release is a better option than downsizing if you’re looking to access funds quickly and aren’t too concerned about reducing your heirs’ inheritance.

    Before You Go…

    Use the FREE Calculator Below 👇

     

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