Equity Release FAQ

Equity release is a scheme in which a person can ask for release of cash or regular income or both as a loan on the equity built on his/her property. There are many questions that will pop up in your mind when you are deciding on going for equity release. A few frequently asked questions are answered below:

  • What is the eligibility of equity release?
    For equity release the person should be at least 55 years and above and should own a home. In case the house is under joint ownership, both the owners should be 55 years and above. The property that you won should be worth a minimum amount; this varies with one lender to another. There are many factors which will affect the suitability of the product and also the lender, this include property type and even its construction. Consult a specialist advisor to explain all these things fully.
  • Who all can live in the house after equity release?
    Other people can also live in the house which has been given for equity release but they will have to sign a form to acknowledge the equity release plan.
  • Will the benefits get affected with equity release?
    All the equity plans reduce your state benefits and also the value of your estate. You may consult your advisor for any state benefit that you may still be entitled.
  • What is the money that I will get from equity release?
    The money that you will get will depend on many factors like, the value of the property and your age. The older you are, greater will be the proportion of your home equity that can be released. The amount of money that you can borrow and also the way in which it can be borrowed depends solely on the plan that you choose for equity release.