Is equity release right for me?Equity release allows homeowners over the age of 55, to release tax-free cash from their homes (provided your home is worth over £70,000) to be used for any reason.So, for example, if you are looking to release cash tied up in your home to improve your retirement, then equity release could be for you.How can equity release be used?With equity release, you are still the legal owner of the property and you do not need to sell up and move to a new house.The most popular type of equity release is a lifetime mortgage, which is a loan secured against your home. This loan, plus the interest accumulated is then paid back at the point you, or the last remaining applicant (in the case of a joint mortgage) pass away or go into long-term residential care.There are many reasons why people unlocked the equity from their property. Common uses are:Gifting the money to a friend or relativeAssisting you in finally retiringHelping children, or grandchildren to get onto the property ladderA once in a lifetime holiday or cruise around the worldPay off the remaining mortgage, to free up more money each monthPay off existing debts, such as loans and credit cards to free up monthly incomeRedecorating the house, or building an extension to improve the home’s valueUpgrading your vehicle to a more tax-efficient, economical oneRepayments versus no repaymentsWith equity release, you have the option to make monthly payments towards paying off the interest added. This helps in reducing the impact on the value of your estate, for when it’s time to be handed down to your beneficiaries.Alternatively, you don’t have to make any payments towards the interest – which, if you’ve paid off your outstanding mortgage balance, or unsecured debt, could free up additional funds for you to use in your retirement.It reduces the value of your estateWhilst equity release reduces the value of your estate, this does help reduce the amount of inheritance tax you will pay when the time comes.Releasing equity can also affect your entitlement to means-tested benefits, which is important to consider.How can Equity Release Works help?At Equity Release Works, we put you in control and provide you with a free initial consultation. We take the time to understand whether equity release is in your best financial interests and if it is not, we will tell you and advise you of your options. Being impartial is important to us, as it means that we compare the whole of the market to find the plan that best suits you and your goals.