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Equity Release

Release equity from your home

Many people are currently experiencing difficulties with their pension. Those that are having to live on a small pension may be living in properties that have a considerable amount of equity tied up in them.

An equity release plan is a plan by which equity can be released. Essentially, an equity release plan allows you to borrow money against the value of your home, which is the repaid by selling you home after you die.

How does it work?

While different schemes work in slightly different ways, the basic premise is that you borrow money against the value of the home and then repay the loan by selling your house after you die. Most equity release plans will require that you are over the age of 60 and that you do not have a mortgage on your home.

You should make sure that you get advice before opting for an equity release plan, as it will be a major financial decision that will affect you and your family even after you die.

Advantages of equity release plans

  • An equity release plan can offer you a lump sum or a regular income or both
  • The money that you release will be tax-free
  • You will be able to continue to live in your home until you die
  • Equity release will be better for people who do not have children that they wish to leave an inheritance to
  • They can be used as a way of avoiding inheritance tax in that equity can be released to be given to a child or family member
  • The money released can be put towards paying for care so that you do not have to sell your home

Get independent advice on equity release mortgages

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