Equity Release is a way of freeing up some of the cash (equity) tied up in your home to enjoy a retirement to remember. The tax-free money you release is yours to spend as you wish, whether that’s for home improvements, holidays or helping your family.
Depending on the plan you choose, the money can be released in one lump sum or smaller amounts over time. The amount you can borrow depends on the plan you choose, your age, the value of your home and the equity available.
To qualify for Equity Release you (or both you and your partner) must be over 55 years old, must own your own home (worth at least £70,000) and live in mainland UK or Northern Ireland. Your home must also be a residential property of standard UK construction.
With the Equity Release Mortgages (Lifetime, Drawdown and Interest Only) you still own your home; you are simply borrowing money against it. If you choose the Home Reversion Plan, the ownership of all or part of your home is transferred to the lender. In all cases you continue to live in your home until you die or move into permanent care.
There are four main types of Equity Release: