What is equity release?
Equity Release is the name given to the release of the wealth that is tied up in a property without having to sell the property or move to another home. There is an option to borrow against the value of the property which can then be spent on whatever you would like.
What are the types of equity release?
- Lifetime Mortgage: this plan allows individuals to extract their funds in a single lump sum or in smaller amounts over time until the agreed maximum limit is reached.
- Home Reversion Plan: again, this allows an individual to access all or a part of the value of property while still having the right to remain in it without paying rent.
What is, if applicable, the minimum value for properties on which equity release is available?
Equity release providers will typically not accept any properties that are valued at under £75,000.
How much will I be able to borrow?
A professional valuation will be undertaken by a surveyor following the instruction of a provider which would then give the amount that could be released. The amount can also be affected dependent on age.
How do I set up an equity release plan?
Prior to moving forward, seek professional advice and do research which will help when you speak to an advisor.
How old do I need to be?
In order to qualify for a Lifetime Mortgage, individuals will need to be 55+, the same age that qualifies for when taking out a plan with a partner. For a Home Reversion Plan, the asked minimum is 65.
What happens if I live with someone else?
An individual is able to take out a joint equity release plan is they are married, in a civil partnership or living with another as a partner and are both eligible by age.