Equity release to help with debt | Scotland

Equity release

Equity release allows homeowners aged 55 and over to release some of the money tied up their home, without the need to move.

You can release some of the equity in your home to provide a tax-free cash lump sum, a regular income or a flexible borrowing reserve. How much you can release varies between providers but usually depends on how old you are, the value of your home and the type of plan you choose.

There are three types of equity release plans, Interest Only Lifetime Mortgages, Lifetime Mortgages and Home Reversion Plans.

If you have a debt problem, you can use our online debt counselling service, Debt Remedy, which will provide you with the most appropriate solution to your debt problem. Alternatively if you wish to speak to someone, please contact our free helpline on 0800 138 111.

If you are considering equity release and would like to speak to one of our specialist equity release advisors. Or, you would just like more information on equity release, please visit CCCS Equity Release.

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FAQs

Will I still own my home if I proceed with equity release?

This depends on the type of equity release plan that is best for you.

Home Reversion Plan

The deeds, and therefore the ownership of the property, is transferred to the home reversion provider.
You would retain the financial interest in any part of the property not sold to the home reversion company.

Lifetime Mortgage

You maintain 100% ownership of your property.

What fees are involved with setting up an equity release plan?

There are four main costs associated with setting up any equity release plan.

Survey Fee - You pay this at the start when you submit your application. The amount usually depends on the estimated value of your property
Application Fee - You pay this directly to the lender when your loan completes. This can either be paid from the funds released or added to your loan. This fee is typically £595
Legal Fee - All SHIP (Safe Home Income Plan) members insist you receive independent legal advice from a solicitor. Your solicitor should offer a fixed fee for this service of between £400-£500
Advice Fee - CCCS Equity Release Ltd has no fees for advice. Other companies’ advice fees are usually between £595-£2,000

Can I lose my home if I release equity from it?

As long as you adequately maintain your home and keep to the terms of the agreement, SHIP members guarantee lifetime tenancy in your property regardless of what happens to future interest rates, property values or investments.

How long does an application for equity release take to complete?

The time taken to complete an application varies depending on each applicant’s individual circumstances.

You should allow approximately 4 – 6 weeks from the time you submit your application. The equity release company will send all funds directly to your solicitor.