What is Equity Release

Equity Release is a way of unlocking capital from your home. Equity release schemes essentially allow you to borrow money against the value of your home, with the debt being repaid from the sale proceeds after death. The two principal methods are Lifetime Mortgages and Home Reversion plans.

Points to consider

  • minimum age usually 60 but can be as low as 55.
  • you continue to live in your home for a long as you want.
  • you receive a guaranteed tax-free lump sum, income for life or both.
  • provided the plan provider is a SHIP* member you have the freedom to move to a suitable property and without financial penalties, should you do so in the future.
  • there are no repayments required until the home is sold. This is normally on death or entering long term care.
  • As long as the scheme has a "no negative equity" guarantee your estate will not be liable for any debt beyond the property value.
  • providers will only accept applications from customers who have received advice from a professional, so there is value in being guided by our advisers who hold the appropriate qualifications.  

*SHIP (Safe Home Income Plans) formed in1991 by the main provider to promote safe schemes and protection of planholders. Companies complying with the Code of Practice use a logo in there printed literature which shows a ship, signifying the SHIP campaign.

 

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