Equity release allows homeowners aged 55 and over to release some of the money tied up their home, without the need to move.
Equity release can be used 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: -
Important factors to think about when considering equity release
- Releasing equity from your home will reduce the value of your estate, affecting the amount of inheritance you will be able to leave
- Releasing equity may affect your tax position and entitlement to means tested benefits
- Future property prices may be higher or lower than they are today
- Assess the alternatives to releasing equity from your property particularly downsizing by selling your home and moving to a smaller property
- Obtain a second opinion, discuss your plans with family or a trusted friend