Equity release schemes have increased in popularity throughout 2018 and if it’s something you’re considering here are 10 things you should know:
- You can stay in your home as long as you wish
- With most schemes you can move home if you choose and transfer the plan to your new property. The new property however must be approved by the lender, and if it is a lower cost property funds may need to be paid back.
- You may be barred from moving to properties such as a park home, or certain types of retirement development.
- You do not have to make monthly repayments
- Popular drawdown plans allow you to take the money in stages rather than as a single lump
- How much you will receive depends on a variety of factors
- All Equity Release Council approved plans have a no-negative equity guarantee
- Future increases in your home’s value may give you a chance to release more equity
- Equity release will reduce the amount of inheritance you leave to your family
- The cash you release from your main home is free of tax but may have effects on eligibility for certain government benefits
Despite the wealth of information that is out there we advise speaking with a financial advisor to make sure you’re getting the best deal there is for your situation.