What is equity release?
Equity release is a means of releasing a tax-free lump sum from the equity locked in your home. There are typically no monthly repayments to make.
Spend the money on anything you like from helping with the everyday costs of living, to helping grandchildren onto the property ladder, to making home improvements or even travelling and seeing the world!
An equity release plan is either a lifetime mortgage or a home reversion plan. Taking out an equity release plan will reduce the value of your estateThe value of your assets at the time of your death, after all debts and charges have been paid. and could affect your entitlement to state benefitsMeans tested and non means tested benefits, distributed by government bodies, to which you may or may not be entitled. .
Who can take out a plan?
To qualify for equity release you must:
- Be aged 55 or over – both applicants if couple.
- Own and live in the property you wish to release equity from.
- Be able to release enough equity from your property to enable you to fully pay off any outstanding mortgage or secured loan.
Your property must be:
- Valued at least £70,000.
- In the UK (including Northern Ireland).
- Either freehold or leasehold, with a minimum lease period of 75 years remaining.
- Of standard construction and in good condition.
If you are considering equity release as your next financial move then you should read through is it right for you? carefully.
Did you know?
The amount of equity you could release depends on your age and the value of your home.
Find out instantly how much you could release by using our free online calculator.
This is an equity release plan. To understand the features and risks ask for a personalised illustrationThis is a document which sets out the details of your recommended plan as they apply to you, alongside the associated terms and conditions. .