Contrary to the belief held by some that taking out an equity release scheme means that they will then be unable to move house, it can actually help by providing cash to improve the new house, as pigeon fancier Frank Johnson and his wife Elizabeth found.
When the Johnsons decided to move house after taking out an equity release plan, they found they had the right to move, without penalty, and they could simply take their equity release plan with them to the new property.
They took out a partial home reversion scheme in order to make some home improvements, and were also able to put some money aside to top up their pensions.
"After talking to our children we decided that the reversion plan suited all our needs", Frank said, and they were able to unlock the cash that they needed from their Somerset home using Home & Capital equity release.
After six years, however, they decided that they wanted to live nearer their family, so they sold their home and purchased a property where their family live in Kent, with the whole transaction being managed by Home & Capital's Home Services Department, at no extra charge.
Because they had retained a share in their previous home, opting only to take out a partial home reversion plan – which means they only sell a portion of the property to the equity release provider – Frank and Elizabeth benefitted from an increase in the value of the property when they sold it.
This enabled them not only to move in order to be nearer to their family without having to sell any further share in their home, but it also meant that they had some cash left over from the sale to do up the new one and make it the way they wanted.
"Many people might think that if they take out an equity release plan, they will never be able to move house again. However this is not the case," said Nigel Hare-Scott, sales director at Home & Capital.
"If you enter into a plan with a SHIP endorsed provider, you have the freedom to move without financial penalty. This safeguard is particularly valuable if in later life you need to downsize or perhaps relocate closer to your family."
Want to know more about releasing cash from your home? Read our guide to equity release and get an equity release quote
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