1.    What is equity release?

Equity release allows homeowners aged 55 and over to access the equity tied up in their property while still living in it.

2.   How does equity release work?

There are two main types: lifetime mortgages and home reversion plans. We deal with lifetime mortgages where you borrow against the value of your home, and the loan plus interest is repaid when you die or move into long-term care.

3.  What are the eligibility criteria for equity release?

Typically, you must be at least 55 years old, own a property in the UK worth a certain minimum value, and have little or no mortgage left on it.

4.   What are the risks of equity release?

Equity release may reduce the value of your estate and affect your entitlement to means-tested benefits. It's essential to consider the long-term implications and seek independent financial advice.

5.    Is equity release regulated?

Yes, equity release is regulated by the Financial Conduct Authority (FCA). Providers must adhere to strict guidelines to ensure consumer protection.

6.    Can I still move home if I have equity release?

With a lifetime mortgage, you can usually move home, but you must meet certain criteria, and the new property must be acceptable to the equity release provider

7.    How much can I borrow with equity release?

The amount you can borrow depends on factors such as your age, property value, and the type of equity release scheme. Providers typically offer a maximum loan-to-value (LTV) ratio.

8.    Are there alternatives to equity release?

Yes, alternatives include downsizing, using savings or investments, or seeking assistance from family members.

9.    How do I repay the equity release loan?

For lifetime mortgages, the loan plus interest is usually repaid from the sale of the property when you die or move into long-term care.

10.  How can I find a reputable equity release provider?

It's crucial to seek advice from a qualified independent financial adviser (IFA) who specializes in equity release. They can help you understand your options and find a reputable provider. Remember, these FAQs provide general information, and it's essential to seek personalised advice before making any decisions about equity release.

If you require legal advice in relation to equity release please call 01253 629300.