A FAMILY FORTUNE; OAPs free up money from house.

Byline: KEVAN REILLY

RON and Pauline Tinker wanted to help their family out, so they released thousands of pounds tied up in the value of their home.

They cashed in on equity in their property to raise pounds 40,000 and used the money generously. A granddaughter received cash for driving lessons and a car when she passed her test, grandsons were able to go on a dream skiing trip and cash was injected into their son's business.

Ron, 74, and Pauline, 76, were able to put another room on their cottage. And they still have spare cash left after taking out an equity release scheme with specialist independent financial advisers Key Retirement Solutions.

The couple bought the 200-year-old cottage at Staining, Blackpool, for pounds 75,000 15 years ago and have seen its value rise to pounds 96,000. But they couldn't touch the money and had to rely on their pensions. By taking out an equity release scheme they sold 90 per cent of their house for pounds 40,000 and kept 10 per cent.

"We talked it through with our families first as we were virtually selling the house over their heads. But they are doing well, so they said, 'Go ahead'.

"It is much nicer to do it now while we are here rather than when we are gone. We needed the money. It allows us to relax a bit and we have the money there when we need it," says Ron.

Sales of equity release schemes are booming. Watchdog group Safe Home Income Plans reported an 86 per cent increase in new business in the six months to July. Total business was pounds 582million, compared with pounds 313million in the same period the year before.

It's no surprise, because charity Age Concern reckons two out of three pensioners struggle to make ends meet. Yet they own homes worth at least pounds 668billion, with all that cash sitting there doing nothing. Equity release schemes are a safe and straightforward way of unlocking the cash. Generally you have to be between 55 and 95 and own a house worth more than pounds 40,000 with little or no mortgage left to qualify.

There are different schemes to suit different people and different needs. But with firms pouring into the booming market it is important to take independent expert advice.

Mirror Money has produced a Guide To Equity Release Schemes sponsored by Key Retirement Solutions. It offers advice for anyone who is considering taking out an equity release scheme.

The guide looks at the dos and don'ts when considering such a scheme and outlines the steps you should take before going ahead. For your free copy ring 0800 0855 755 or write to Mirror Equity Release Guide, FREEPOST, NWW 201A, Preston, PR2 2ZY.

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HAPPY: The Tinkers Picture: PETER LOMAS