YOUR EQUITY RELEASE QUESTIONS ANSWERED

With recent figures suggesting retired homeowners have shrugged off Brexit uncertainty to withdraw record levels of wealth from their properties this year, we answer some of the most commonly asked questions about equity release. A. Equity release is a way for older people to release a tax- free lump sum from the cash tied up in their home. It’s available to over- 55s, who own and live in the property the equity is released from. There are typically no monthly repayments to make and you can spend the cash on whatever yo u want. between 55 and 95, with a minimum property value of £ 6 0,000, you could be eligible. A. All equity release plans will reduce the amount you leave as an inheritance but there are options available that allow you to guarantee an inheritance to your loved ones when the plan comes to an end. If you take out a home reversion plan, for example, and sell less than the full value of your home, you will be able to guarantee this part of the property as an inheritance to your loved ones from the sale of t he property. A. Yes, equity release providers will allow you to release cash from your property if you have an outstanding mortgage but they will expect you to use the cash you release to pay off the am ount still owed first. A. If you move out of the property into a care home, your equity release plan would come to an end and, once your house was sold, the outstanding debt would be repaid in full to your equity release provider. If you are a couple and only one of you moves into care, your partner can stay in your home until they pass away or move into lon g- term care. A. The answer is again yes, but only if you choose a plan that guarantees you have the right to remain in your home for life. That’s an important detail to clarify before you sign anything. It should also be possible to move home while you have an equity release plan which would simply move with you.