Equity Release

Advantages of Equity Release

The main advantages of equity release are:

• Equity release offers a way for you to raise money tax free, with no obligation to ever repay the money
• You can release equity from your home without having to move home
• There are a number of tax advantages to releasing equity during your lifetime, rather than leaving the equity in your home to your family when you die

Disadvantages of Equity Release

The main disadvantages of equity release are:

• You may lose any means tested benefits you receive by taking out an equity release scheme
• Releasing equity from your home incurs costs, which will ultimately be borne by you and your family

Conditions for UK Equity Release Schemes

Generally, to qualify for a UK equity release scheme:

• You, or your partner if younger, must be at least 55 years old
• You must have no mortgage oustanding on your property, or only a very small mortgage
• You must own a property in reasonable condition worth at least £70,000

What Equity Release Products are Available?

There are 4 main types of equity release products:

• Home Reversion Schemes
• Lifetime Mortgages
• Interest Only Mortgages
• Home Income Plans