Without sounding like we are sitting on the fence, the answer to this question must be:

It really depends on your circumstances.

Really, it does. What we can now look into is what your circumstances might be and then what action you could take with those circumstances.

Scenario 1:

You are house-rich, cash-poor. You have few relatives to leave an inheritance to or your relatives are financially independent and do not want, need or expect an inheritance. Your financial situation dictates that you need to release the maximum amount of equity from your home.

Potential solution: A home reversion plan.

Scenario 2:

You want to leave some sort of inheritance to your children but you have trouble meeting your bills every month and you find yourself falling short on a regular basis. You could do with a top-up as and when you need it but are wary about borrowing a large amount.

Potential Solution: A drawdown equity release plan; where you can draw as little as you want on a regular basis.

Scenario 3:

You want to fund an expensive purchase, holiday, home improvement but also want to leave some inheritance. You don’t want to sell your home like in a home reversion plan but you want a substantial amount of money released, which you use to fund a purchase. You may also prefer the idea of managing and controlling your money yourself rather than a drawdown plan.

Potential solution: Lifetime mortgage

If you are in the States then a reverse mortgage may be for you. There are plenty of good reverse mortgage information sites out there. Another reverse mortgage site.