Unlocking the Value in Your Home When You’re “Asset-Rich but Cash-Poor”
What Does It Mean?
Being asset-rich but cash-poor is a situation many homeowners find themselves in. You’ve built up substantial wealth in your property over the years, but that value is tied up in bricks and mortar, not readily available cash.
If you bought your home decades ago, rising property prices may have significantly increased its market value. But unless you sell, that money stays locked in your home. For many people in their 50s and beyond, income can start to feel stretched as they focus on paying bills, supporting family, or planning for retirement—leaving limited liquid funds to fall back on.
The Sandwich Generation Squeeze
Many homeowners today are balancing the needs of children and elderly parents at the same time—commonly called the sandwich generation. Whether you’re helping with university costs, assisting adult children onto the property ladder, or contributing to care expenses, these demands can add pressure to your finances. Even with a valuable home, you might still find cash flow tight when you most want comfort and flexibility.
Unlocking Your Property Wealth
The good news is that owning your home outright—or having significant equity—can give you options. Equity release, usually through a lifetime mortgage, enables you to access some of your property’s value without needing to move.
It can help you:
Release funds for retirement income, travel, home improvements, or supporting family.
Maintain flexibility, as most lifetime mortgages don’t require mandatory monthly repayments (the interest rolls up over time).
Stay in your home for life, with full legal ownership and the right to live there.
A Real-Life Example
Take David and Linda, both in their 70s. They used a lifetime mortgage to release £200,000 from their Hampshire home. This allowed them to help their daughter buy her first property and to enjoy a more comfortable retirement. They kept full ownership of their home and didn’t have to make any monthly repayments, giving them peace of mind and security.
Is It Right for You?
Equity release is a significant decision and won’t suit everyone. It can affect the value of your estate and your entitlement to certain means-tested benefits. Because interest compounds over time, it’s essential to consider the long-term impact.
However, with professional advice, you can structure an arrangement that fits your goals—whether that’s taking a single lump sum, drawing funds in stages, making voluntary repayments, or setting aside an inheritance guarantee.
Final Thoughts
Having a valuable home doesn’t always translate into having money available when you need it most. If you’re in your 50s or older and find your income or savings under pressure, exploring equity release could help you unlock funds to improve your lifestyle and support those you love—without giving up your home.
NOTE: A lifetime mortgage is a loan secured against your home. To understand the features and risks, ask for a personalised illustration. Equity release will reduce the value of your estate and may affect your entitlement to means tested benefits.