How Equity Release Works
Equity release allows homeowners aged 55+ to unlock tax-free cash from the value of their property while continuing to live in their home. Here’s a simple summary of how it works and what to expect.
What Equity Release Is
Equity release is a way for homeowners aged 55+ to take a loan secured against their home (usually through a lifetime mortgage) and receive the funds as a lump sum or in flexible withdrawals, while retaining ownership and the right to stay in their property.
How Much You Can Release
The amount you can unlock depends on your age, the value of your home, and the lender’s criteria; older applicants and higher‑value properties usually qualify for higher release amounts.
Guiding You Through Clear Equity Release Choices
Equity release comes in different forms, and understanding how each option works helps you make an informed decision that suits your needs.
What exactly is equity release and who qualifies?
Equity release, otherwise known as a lifetime mortgage allowins homeowners aged 55 or over to unlock cash from the value of their home without having to move. Generally, you’ll need to own a qualifying property in good condition and meet the age and minimum property-value requirements set by the lender.
How much tax‑free cash could I access?
The amount you can release depends on your age, the type of equity‑release plan you choose, and your home’s current market value. Providers typically offer a percentage of your property’s value. Older applicants can usually access a larger percentage.
How do I know if equity release is right for me?
Equity release can be beneficial if you need extra funds in retirement and want to remain in your home. However, it reduces the inheritance you leave behind and may affect means‑tested benefits. Speaking with a qualified, FCA‑regulated adviser will help determine if it suits your needs and circumstances.
What can equity release money be used for?
There are no restrictions on how you use the released funds. Many people use the money for home improvements, paying off an existing mortgage, supplementing retirement income, helping family members, or financing significant purchases such as a car or holiday.
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