Welcome to the Equity Release FAQ page. Below are answers to some of the most commonly asked questions about our services. If you don’t find the information you need, feel free to contact us using the enquiry form.
What is equity release?
Equity release allows homeowners aged 55 and over to unlock some of the value (equity) tied up in their property without having to sell it. The money can be taken as a lump sum, in smaller amounts over time, or as a combination of both, depending on the plan.
Who is eligible for equity release?
Homeowners aged 55 and above, who own property in the UK, are generally eligible for equity release. The property must be your primary residence and meet specific requirements set by the equity release provider.
How much equity can I release from my home?
The amount of equity you can release depends on several factors, including your age, the value of your property, and the type of equity release plan you choose. Generally, the older you are and the more your property is worth, the larger the amount you can release.
Will I still own my home if I release equity?
Yes, with most equity release plans, such as lifetime mortgages, you retain full ownership of your home. The loan, plus interest, is repaid when the home is sold, usually after you pass away or move into long-term care.
What can I use the money for?
You can use the funds from equity release for almost anything, including home improvements, paying off debts, funding retirement, helping family members, or simply improving your quality of life.
Is equity release safe?
Equity release products from providers regulated by the Financial Conduct Authority (FCA) are safe. Many plans also come with a “no negative equity guarantee,” ensuring that you or your estate will never owe more than the value of your home when it’s sold.
How does equity release affect inheritance?
Equity release reduces the value of your estate, which may impact the inheritance you leave to your beneficiaries. However, some plans allow you to ring-fence a portion of your property’s value to protect it for inheritance purposes.
Are there alternatives to equity release?
Alternatives may include downsizing, remortgaging, or using savings and investments. It’s important to explore all options and consult with a financial advisor to determine what’s best for your individual situation.
Will equity release affect my tax position or benefits?
Equity release funds are typically tax-free, but they may impact certain means-tested benefits. It’s essential to discuss your circumstances with an advisor to understand the full implications.
How long does the equity release process take?
The process generally takes between 6 to 8 weeks from initial consultation to receiving the funds. The timeline can vary depending on the complexity of your situation and the provider’s requirements.
How do I get started with equity release?
To begin the equity release process, contact Equity Release for a free, no-obligation consultation. Our expert advisors will guide you through the process, answer any questions, and help you find the best solution for your needs.
Have More Questions?
If you have any further questions or would like to discuss your options, please contact us using the enquiry form provided.
Our friendly experts are here to help guide you every step of the way.