Equity Release Frequently Asked Questions
We know that you are likely to have lots of questions about equity release, what’s involved and how you could benefit from it.
Other FAQs
What needs to be considered?
It’s all about equity release being the most suitable solution for your specific needs. There is a lot to consider but the main points that an advisor will discuss with you are;
- The value of your home and the type of construction;
- Your incomings and outgoings;
- Your plans for how you’ll spend the money;
- Your health;
- Your current and potential future financial situation; and
- The alternatives to equity release that you should consider.
Equity release steps, what happens next?
We’re experts in equity release, it’s our job to guide you through the process, explaining everything every step of the way.
View the equity release journey step-by-step hereCan I release all the equity from my house?
The amount of equity that you can release is based on the value of your home and the age of the youngest homeowner, rather than on how much equity you have in your home.
The only way that you could access all of your equity is by selling your home, rather than using equity release.
Can I move house if I take out equity release?
Lots of people wonder ‘can I move house?’ or ‘can I sell my house if I have equity release?’ Yes is the answer. All plans that meet the Equity Release Council’s standards have to allow you to move house in the future. That is providing that the house you’re moving to meets the criteria set by your equity release lender.
How do I know if my equity has increased?
Despite ups and downs in property prices, there is every chance that your home is still your biggest asset, and is worth considerably more than you paid for it.
UK house prices have risen by 57% in the last decade (to end of June 2023). As a result, millions of Britons who may have reached or are approaching retirement age, may now find themselves with a wealth of equity that far outweighs their savings and income.
You can use tools such as Zoopla and Nethouse prices to check how much similar house in your area have sold for recently. That will give you a good indication of how much your home could be worth.
As part of your equity release application, the lender will organise for a full property valuation, which will tell you exactly what your house is worth in the eyes of the property surveyor.
Do I qualify for equity release?
Equity release could be an option for anyone who owns their own home and is aged 55 or over.
- You can still have a mortgage in place
- Your home must be worth at least £70,000.
There can be other things that affect whether you qualify. Such as if your home is classed as non-standard construction because it’s not built from brick or stone. This doesn’t necessarily mean that you won’t qualify, but it may limit the lenders we can recommend to you.
Use our online calculator to check whether you qualify and how much tax-free cash you could release.
What is equity release?
The main type of equity release, a lifetime mortgage, is a loan secured against your home:
- You release some of the value of your home to spend.
- Equity release is tax-free, so more money in your pocket.
- You don’t have to make repayments if you don’t wish to.
- The money that you release, and the interest, is repaid when you die or move into long-term care.
- You continue to own your home.
Options to consider alongside equity release
We want to make sure that you only take out equity release if it’s suitable for your situation. It won’t be right for everyone.
As part of our advice to you, we will ask you to think about a range of options, such as downsizing to a smaller home, maybe even considering taking in a lodger to help with the running cost of your home, and possibly asking family or friends for support.
How much tax-free cash can you unlock from your home?
Use our free calculator to get an instant view of how much tax-free cash you could release to help you live your life, your way.
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A few things to think about
Equity release will involve a home reversion or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. You can read more about the different types of equity release plans here and if you want more detail we can provide you with a personalised illustration to explain exactly what equity release could mean for you and will outline the features and risks.
You must take financial advice before proceeding with equity release. It’s important that you make the right decision. That’s why we provide our initial advice for free and without obligation. Only if your case completes would our advice fee of £1,895 be payable. Other lender and solicitor fees may apply.
You will need to pay off any existing mortgage or secured loan that you have. You can use some of the money raised through equity release to do this.
Another consideration is that equity release interest is compounded, so you pay interest on interest. The money you release, plus the accrued interest is then repaid when you die or move into long-term care.
Equity release may have an impact on your entitlement to means-tested benefits now and in the future.
You’re talking to the people who know.
We will talk you through all your options and explain all the pros and cons of equity release, so that you’re fully informed.
Our service is about finding out if equity release is a good fit for you, and only then will we find the best equity release plan for your individual needs.
Our promise to you...
- You will be assigned a dedicated advisor who will guide you through the process from start to finish.
- Equity release will only be recommended if it’s suitable for you.
- We will search a range of plans from multiple lenders to find the best solution for you.
- The plan that we recommend to you will be protected by the safeguards of the Equity Release Council.
- You will receive a bespoke recommendation document to read at your leisure.
