Moneytree Wealth Management
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Equity release

Equity release is where you free up some of the equity in your home without you having to sell it or move. You can take the amount released as a lump-sum or in instalments. You can only take out an equity release on your main property.

Your home may be repossessed if you do not keep up repayments on your mortgage.

Equity Release will reduce the value of your estate and can affect your eligibility for means tested benefits.

Lifetime mortgages

These are secured on your property, but you stay as the owner. You can either make regular repayments on the mortgage or let the interest build-up and repay the amount when you die or go in to long-term care and sell the property.

If you’ve got family, you can withhold some of the value back, and pass it on as an inheritance.

Home reversions

Here, you sell all or part of your property, but stay living in it free of charge.  You’ll receive a lump-sum or regular payments from the part you sell. Once your plan’s come to an end, the property is sold, and the proceeds are shared between you and the home reversion plan provider.

If you’ve got family, you can withhold some of the value back, and pass it on as an inheritance.

Things to think about

  • You need to be at least 55 to take out these products.
  • Both lifetime mortgages and home reversions come with a ‘no negative equity guarantee’.
  • They can be complicated schemes with possible implications later in life, so you really need to understand what you’re buying.

To talk to us about an equity release, use the pop-up form on the right-hand side of this page. Alternatively, you can give us a call on 01244 470 107 or send us an email to: info@moneytreewm.co.uk if you prefer.

Rahim Ullah

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