How to buy a property with Equity Release.

Downsizing may not mean moving to a cheaper property.

 

When people talk about ‘downsizing’ they generally assume it means moving to a smaller and cheaper property, however what if you are looking to move to a smaller property but are moving to a different area that is more expensive?  Can you buy a property with Equity Release?

 

Maybe you are looking at moving to a bungalow or somewhere with a smaller garden that requires less upkeep because mobility is becoming more difficult or you just don’t want to look after a garden anymore.  You could be moving closer to your family, to the seaside or out to the country.  The fact you are moving doesn’t always mean you are moving to a cheaper property.

 

Your options don’t have to be limited by the fact you are moving to a different area where the prices are possibly slightly higher.  If you are already mortgage free but cant quite afford that dream house by the sea why not take out an Equity Release plan on the new property and use the money you release to fund the difference?

 

Example of how Equity Release can help you buy a more expensive property:

 

Your current home is a 4 bedroom 2 storey house worth £200,000 and you are mortgage free.  You are looking to move to a 2 bedroom bungalow that would cost £250,000, but don’t have any savings to cover the difference.  If you take out an Equity Release plan on the new property and release £50,000 immediately you would have sufficient cash available to buy the new property.

 

Equity Release for purchasing a house

 

Any money you release from your home will be completely tax free and you can use the money for any purpose you like.

 

If you are looking to buy another property as a holiday home or a buy to let property and need a deposit for the mortgage you could release some cash from your main residence and use this.  This would allow you to buy the holiday home you have always dreamed off without the need to save up a deposit.  Or it could allow you to put down a larger deposit meaning the repayments on your second mortgage are lower.  You can reduce the amount of interest accruing on your Equity Release plan by making voluntary repayments if you wish and even repay the money you have released over time.