Some people think that taking out an equity release scheme means that they will then be unable to move house, but 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 could still 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 their children, the Johnsons decided that the reversion plan suited their needs, and they were able to unlock the cash that they needed from their Somerset home.
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 a Equity Release Provider 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 also 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, 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.