B P Collins Solicitors: talk to the experts
Gerrards Cross: +44(0) 1753 889995
Beaconsfield: +44(0) 1494 675363
Related stories
Support offered to those lacking mental capacity
18 December 2008
Many 'opting for equity release'
17 December 2008
Power of attorney "bread and butter" of financial sense
15 December 2008
Elderly 'turning to equity release'
10 December 2008
Elderly warned about equity release
22 September 2008
Releasing the equity from their homes to pay for long-term care and other living costs may not be the ideal solution for all elderly people, it has been claimed.
Consumer magazine Which? warned that equity release schemes can be expensive and "inflexible", often "severely limiting pensioners' choices later in life".
The publication stated that elderly people who do take out an equity release scheme may also find if they choose to move into sheltered housing or a retirement home they could be required to pay off the loan earlier.
Philip Spiers, co-author of the Which? Care Options in Retirement report, said equity release schemes may offer an income to elderly people and an opportunity to stay in their own homes.
"However, if your circumstances change you might not have enough money remaining to fund alternative accommodation and money received through equity release may seriously alter the amount of benefits you are able to collect," he commented.
The Department of Health recently launched a consultation into the future shape of the care and support system in England.
It is intended to discover people's views on how the responsibility for care can be shared as people live longer.
