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Frequently Asked Question
To be eligible for equity release, you must be 55 years old or above and own a property worth at least £70,000 in the UK. Most providers also require you to be mortgage-free or have only a small outstanding mortgage balance remaining.
The amount you can release depends on factors like your age, property value, and the specific equity release plan. Generally, you can access between 20-60% of your home's worth as a tax-free lump sum.
With a lifetime mortgage, which is the most common form of equity release, you don't have to make any monthly repayments. The loan amount plus rolled-up interest gets repaid when your home is eventually sold, usually when you move into long-term care or pass away.
Yes, the tax-free cash lump sum you receive could impact your eligibility for means-tested state benefits like pension credits and council tax benefits. It's important to check how equity release may affect your specific benefits situation.
Some lifetime mortgage plans offer inheritance protection features that allow you to ringfence a portion of your property's value to leave to your loved ones. Your adviser can explain the various options.
Other options to boost retirement income or access property wealth include downsizing to a smaller home, taking out a traditional mortgage if you qualify, or getting a home reversion plan. An independent adviser can outline the pros and cons of each avenue.