How to use Equity Release Plan to pay for care, Scottish capital property finance IFA Financial Adviser Scotland
How to Use an Equity Release Plan to Pay for Care
7 April 2022
Paying for Care with Equity Release by Just
Just is a top UK equity release provider who specialises in tailor-making solutions for older clients to secure them a better retirement.
Established in 2004, Just believe that using an accredited financial adviser is the best way to get advice on planning your retirement and possible care needs.
John Lawson, a leading financial expert in the UK, believes that you can use equity release from Just to pay for your care during retirement if you need it.
Who Qualifies for Just’s Equity Release?
Equity release plans are available to anyone over 55 who is a homeowner and resides in their primary residence.
By using an equity release plan offered by Just, homeowners can withdraw the capital locked into their home to fund their retirement needs, one of them being care.
Why Use a Financial Adviser?
An accredited institute like Just will be able to guide you through the whole process of taking up the best equity release package for you.
Because equity release doesn’t work for everyone, your financial needs must be analysed to be adequately met.
A financial adviser will thoroughly screen your monetary situation and give you the best advice.
What Kind of Equity Release Options are Available from Just?
Equity release plans work in different ways. There are home reversion plans or lifetime mortgage options.
Lifetime Mortgage
A lifetime mortgage is a loan that uses your home as security. This type of loan will allow you to live in your property until you pass on or move into permanent care.
At that stage, the loan is settled from the value realised from the sale of the property.
Home Reversion
A home reversion plan lets you sell your home or just a portion of it. The sale value is always less than the market value.
You’ll then receive a lump-sum value which is tax-free or the option of a monthly instalment income, or a combination of both.
You can stay in your home rent-free as a tenant.
How does This Help Me Pay for Care?
Paying for care can be a very costly exercise. Care requirements can also be a long term need, so they need to be planned correctly.
By accessing the equity locked up in your house, you’ll be able to draw from funds you previously couldn’t access to pay for your care needs.
You will then be able to plan for care with your loved ones and pick the best care option for you.
Your adviser will also be able to tailor-make your equity release plan to make sure that the costs for the care option you choose are covered.
Home-Based Care Options
Home-based care has many options you can consider; you and your family should decide what’s most suitable. Options include:
- Visiting Care
- Respite Care
- Live-in Care
Home Modifications
Equity release will also provide you with the capital you may need to modify your home for specialised care.
It can be used to revamp a bathroom for wheelchair access or add a chair lift to your staircase.
Equity release gives you many options to allow your current home to cater to your care needs.
How to Use an Equity Release Plan to Pay for Care Summary
An equity release plan such as the one offered by Just can go a long way to getting you the cash you need to pay for your care.
Properly structuring your deal will allow you to choose the best care options for you without worrying about how you’ll cover the bills for it.
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