When your children have left home and you no longer need quite such a big family home, it can be tempting to downsize and move somewhere smaller, which is cheaper to run and maintain, and this also allows you to access some of the value held in your family home.
However, it’s not something you should rush into. Many people have followed this course and then regretted their decision because of the disadvantages of moving home at this stage of life. While you are able to actualise some value from your home, you often have to move to a different area, and you may lose the network that you have established during the years you were raising a family. This can be more isolating than people might think, and it’s hard to start finding new friends when you’re older.
One way to stay where you are, but to increase your income is to take in lodgers. This can be a great solution for people who enjoy the company of others, but for some people, it may feel like an invasion of their privacy. You have to be ready to adjust to share your home with other people.
Something that more and more older people are turning to as an alternative is equity release. This is where you can access some of the financial value held in your home without having to leave it. You can find out about cheap equity release schemes at Age Partnership, an independent company that searches the equity release market for the best available deals for its customers.
It has become a popular choice in recent years due to the increase in the value of property across the board. To find out how much equity you could access from your home, use the types of equity release calculator at Age Partnership.
Equity release may not be suitable for everyone, so before going ahead with a policy, make sure you get some independent financial advice first.