Equity release refers to an area of specialist lending which allows a homeowner to access cash from their property tax-free. Read more about on Equity Release.

Equity release is regulated by the FCA, both the products and advice. The Equity Release Council is the industry body with a strict code of conduct for the products and services we offer. Part of this is a ‘no negative equity’ guarantee, which ensures there is no debt to settle upon death.

If you are a homeowner over 55, you may be eligible for equity release. If it’s a joint application, both applicants need to be over 55. The minimum cash amount released varies by lender but is usually £10,000-£20,000. The minimum property value also varies and is usually around £75,000 to £100,000.

You can think of equity release as a reverse mortgage. You are receiving your equity in the form of tax-free cash. You would have previously paid for this equity with your standard mortgage, or the property may have increased in value.

The loan is paid back to the lender upon the homeowner’s death or when entering long term care. In most cases, a lump sum will be paid with the option for additional withdrawals if needed.

It is also possible on some products to repay the mortgage interest. Homeownership is retained with a ‘lifetime mortgage’ until the property needs to be sold. 99% of equity release cases consist of lifetime mortgages.

The amount of equity you can release depends upon the age of the youngest applicant, property value and the equity in the property. The amount varies by lender, but we can offer a basic calculation. One of our experienced advisors would need to complete a fact-find to get the most accurate figure.