Access cash and stay in the home you love

Find out more about releasing tax-free cash from your home

Equity release is a means of accessing a percentage of your property value whilst still living in your home. The money you release is tax free, and can be taken as a lump sum or smaller amounts over time.

With the most popular form of equity release, a lifetime mortgage, you continue to own 100 per cent of your home. The amount of money that you can access is determined by the age of the youngest homeowner and the value of your property. You must be at least 55 years old to consider equity release and your property must be worth £70,000 or more. One of the main benefits of equity release for many people is that it provides you with a tax-free lump sum of cash and you’re not required to make any repayments if you don’t wish to.

How is that possible?

The money that you release, plus the interest that you accrue, is repaid when you die or go into long-term care and your property is sold. There are plans that may allow you to make voluntary payments subject to certain limits. This could help you reduce the amount of debt that is being rolled up, but early repayment charges may apply above a set value.

Safeguarding for your loved ones

There are plans that allow you to safeguard a percentage of your property value so that you can pass this on to your loved ones. You might also be concerned about passing on debt to your family, but all equity release plans that meet the Equity Release Council’s product standards come with a no-negative-equity guarantee, which means your estate will never owe more than your property is worth when it is sold.

Get advice

An equity release adviser will explore all options with you, and will tell you everything you need to know about equity release, including the effect on the amount of inheritance you can leave and if your entitlement to means-tested benefits could be affected now or in the future. Through our service, we provide access to a free equity release quotation outlining what equity release could mean for you. You’re under no obligation to proceed with anything that is recommended to you. Only if you choose to proceed and your case completes would an advice fee of £1,995 be payable. Other lender and solicitor fees may apply.

What’s involved?

Equity release may involve a home reversion plan or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care. To understand the features and risks, ask for your personalised illustration. Equity release requires paying off any existing mortgage. To request your FREE guide or to find out more, call freephone 0808 239 3421.