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Equity release should 'not be undertaken lightly'

Equity release should 'not be undertaken lightly'
13th March 2009

Releasing equity from a property in later years is "a major commitment" which homeowners should never undertake lightly, according to a charity leader.

Director general of Age Concern Gordon Lishman said that equity release is a great way to ease financial pressures in later life, but must be considered in detail to ensure the option is the best one for the house and inhabitants.

He noted that many older people tend to be asset rich and cash poor, meaning that equity release is one of the more natural choices for the elderly to fund their living.

Mr Lishman continued: "We would urge anyone considering equity release as an option to check they are receiving all the benefits they are entitled to and seek good-quality financial advice to fully explore the other options."

According to the Resolution Foundation, people over the age of 65 have £500 billion in un-mortgaged equity tied up in their homes.

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