3rd March 2009
Equity release can be used by pensioners in need of long-term care to provide much needed cash to prevent them from being moved from their homes, it has been argued.

The current funding system has its complications and pensioners who do not want to be moved to a care home or an unwanted location could opt for this move to fund care in the home, according to Key Retirement Solutions.

Some £500 billion is tied up in un-mortgaged equity in homes of pensioners above the age of 65, the organisation states, and many could fund residential care without the need to sell their investments.

According to Dean Mirfin, Key Retirement Solutions group director, equity release "provides a solution for those who do not wish to move by releasing cash tied up in their property".

However, he cautioned that such a move is not always suitable for everyone and stated that "nobody should commit to equity release without first seeking independent financial advice".

Pensioners are among thousands of property investors in the UK who have seen the value of their investments reduced by the credit crunch over the last few months.



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