Many people who retired to the Coast some years ago are finding it more difficult to meet the ever increasing costs of living from their pension or investment income. There is no question that costs over the last few years have increased significantly but when this is linked to falls in investment returns and stock market crashes, many individuals have had to substantially reduce their standards of living accordingly. Retirement should be about having time for relaxation and enjoyment, being free of worries and not having to be frugal and to do without certain basic pleasures.

At the same time the value of property on the Costa del Sol has continued to rise at alarming rates. This has led to many individuals finding that the bulk of their wealth is tied up in their property. Unfortunately, for those people living in their properties, their principal asset is not producing income - capital growth yes - income no.

Equity release enables you to use the capital locked up in your property to generate additional income. Certain banks will use your property as security for a loan and allow you to invest the funds released into an investment portfolio. With interest rates at record low levels it is now possible to invest sensibly and safely at rates much higher than the cost of the borrowing. The additional income generated can be drawn down as that much needed extra cash.

Most people have worked hard for many years to be free of a mortgage when they come to retire. They want to ensure that there is no risk to their property and home. Equity release is unlike a conventional mortgage and although a charge would be registered against your property, the lender would look upon the investment portfolio as the principal collateral for the loan. Provided that secure and protected investments are used to ensure that the capital value does not fall, then there will be no risk to your property.

Equity release can also be attractive to other more fortunate and wealthier individuals living in Spain. They too have seen their property values increase appreciably over this same period. In all probability this appreciation will continue for some years to come. This scenario has been identified as a means of making capital work twice as efficiently to produce extra wealth and income.

Individual capital wealth continues to increase with property appreciation. Equity release makes additional funds available for investment purposes thereby effectively doubling investment opportunities.

In these circumstances many lenders will allow a borrower greater flexibility with the choice of investments. They will not be restricted to low risk secure products but will be allowed to invest in accordance with their agreed risk strategy.

In many cases of equity release, the lender will allow the borrower to utilize a proportion of the funds advanced for whatever purpose the borrower wishes.

Equity release can useful and helpful to many people for many different reasons and objectives.

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