Many are under the notion that equity release is the best and safest option for the retired homeowners to smoothen their way of living financially after retirement. They are of the view that there is no alternative to release of home equity. However, there are other options for the older generation to unlock the accumulated equity value of their residential properties. The alternatives to home equity release have both advantages and disadvantages.

Downsize the Property – Downsizing your property is a good alternative to releasing equity of the property. It is actually selling a part of the property to generate money for your use. As a result, the property value is reduced by a chunk. No need to borrow money from someone and pay interest on the borrowed amount is the advantage of this alternative. The costs of downsizing including fees for solicitors, estate agents, removal company and stamp duty fees make this option disadvantageous. Besides, one hardly intends to buy a part of a property.

Borrowing from Relatives – It is another alternative to home equity release. Instead of selling your house to an equity release firm, you can borrow money from any of your relatives or family members by mortgaging the house and signing a lease to let you live there. However, this option is not so advantageous as it seems to be. Potential problems may result from it in the future. If the buyer of the property default on some loan and is declared bankrupt, chances are there to consider you as a tenant and evict you from the property. This option is disadvantageous also because of future tax problems.