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What is Equity Release?

The advice that you will receive about releasing equity will differ depending on where you go for your advice, as well as the current situation you are in.

For example, the guidance will vary depending on your age, your location, the value of your property, and whether you plan to leave an inheritance to anyone.

However, the general guidance is consistent no matter where you go.

Firstly, anyone offering equity release guidance services should inform you of the conditions of their advice, such as any arrangement fees you have to pay. They should also discuss how equity release works.

This will involve explaining the various options when it comes to releasing equity, such as home reversion schemes and lifetime mortgages, so that you are aware of the different steps you could take.

Following this, you will receive a Key Facts Illustration (KFI) that takes into account your personal situation.

This is likely to include: the unique features you have selected for your scheme, the amount you would like to lend, the specific type of scheme you would like to have, the interest rate of your chosen scheme, the cost of the scheme, and the potential consequences of changing your mind about equity release once you have already been through the process of accessing it.

At this stage, you are still free to leave and find another financial adviser if you are not happy with the service you are receiving.

Finally, you will receive an offer for equity release that includes all of the details that are relevant to the scheme. This tends to be the amount you are borrowing, the fees that you need to pay, and your personal details such as your name and address.

The two types of schemes are lifetime mortgages, of which there are many varieties and property reversion schemes.

Put simply, with a mortgage that is lifetime, you are lending money secured against your home with the knowledge that this will be repaid after your death when the sale of your home is finalised.

On the other hand, with a property reversion plan, you choose to sell your home (or part of it) to a provider while you are alive, and you remain a permanent resident in your home for the rest of your life.

What is a lifetime mortgage?

This is the most common type of scheme relating to the release of equity, and the most widely available. As a result of this, this type of mortgage can be easily personalised by adding special features and add-ons.

The idea of a lifetime mortgage is, rather than paying off your mortgage in regular instalments, homeowners aged 55 and over can borrow money from an equity release provider and the interest will accumulate over time.

The loan that you borrow will only need to be paid back when you pass away or move into long-term care, as the money is only taken from your home when it is sold. However, in terms of interest, it is possible to pay some of this back.

As mortgage lenders of the lifetime variety do not threaten you with negative equity, you can rest assured that you will never end up owing an amount higher than the value of your house.

However, if you attempt to repay early, you could face a 25% penalty, and if you back out of the scheme, it can be very expensive to switch to another one.

While you are alive, you will remain the rightful owner of your property, so you can profit off the value of your home without having to move. However, this is sometimes conditional i.e. you may be required to remain in the property permanently to keep this status, depending on the rules of your equity release provider.

There are many types of lifetime mortgages, including enhanced, drawdown, income, and interest-only. There are benefits and drawbacks of each one, so we would recommend reading about them in detail before you decide which one is right for you.

What is home reversion plan?

This is the second, and less common, form of equity release scheme, and it is reserved for people who are 65 years old or more. It works as follows: a provider purchases a fixed share of your home, with the knowledge that the value of this share will increase over time.

In return, they provide you with a tax-free lump sum of money, or sometimes partial payments, that are less than the value of the share. This allows you to live in your house until you pass away without the burden of paying rent. The money only goes to the company when your property is eventually sold, which will be after you pass away.

There will be an agreed percentage of money that is distributed to different people, so you can still pass on your income as an inheritance if you have a property reversion, but part of your income will go to the equity release provider.

If you opt for a home reversion, your cash is interest and tax-free, so you are free to spend it on what you prefer. This is useful for pensioners who need to use this funding to pay their bills or make their home more disabled-friendly.

The no negative equity policy is also implemented in these schemes, which is reassuring for people who worry that they will end up paying out more than what their house is worth.

Who qualifies for equity release?

Releasing equity is only feasible for the elderly, which means people over 55 for lifetime mortgages and people over 65 for home reversion. It is also a requirement to be someone who is living in the UK and owns their own home, and who is prepared to stay in this house for the rest of their life.

Finally, to qualify for equity release, your property must be worth at least £70,000 for you to be considered for an equity release scheme.

In terms of who the release of equity benefits the most, it is designed for people who are struggling to make ends meet in retirement, yet their home retains value that they could profit from. It is perhaps most appealing to people who do not intend on passing on inheritance to their spouse or partner, or other family members, when they die.

What are the advantages of equity release?

The most obvious benefit of taking equity release is that it allows pensioners to release money right now. They can enjoy their life and ensure they are financially comfortable as they age, rather than struggling with the goal of passing on a healthy inheritance.

Another great benefit is that, depending on the type of equity release scheme, the interest rates that first apply to the funding are fixed for life, so you do not have to worry about the financial challenge of coping with increasing interest.

For people who are happy with the size and location of their house, and therefore don’t want to move to a smaller house, releasing equity is a great way of remaining a homeowner in the house that they want to live in for the rest of their lives, and having access to funding that they can use however they please.

Finally, even for individuals who are passionate about passing on an inheritance, some equity release providers allow recipients to protect some of the value of their property and keep it separate to the scheme, which means it will be reserved for the people in the recipient’s will.

What are the disadvantages of equity release?

First and foremost, one cannot ignore the high cost that comes with accessing part of the value of your property while you are still alive. Though it is intended to help people who are in a tough financial position, a more affordable option is to simply move to a smaller property.

For this reason, many people see equity release as a last resort option for people who want to release money from their home for financial reasons, or who do not have a beneficiary to whom they want to pass their assets.

Another drawback is that it is very difficult to back out of these schemes, so once you have committed to it, you must continue with it unless you are prepared to pay a large amount of money.

Finally, participating in an equity release scheme does affect your tax status, so if you currently receive means-tested benefits from the State, it is possible that you will no longer be able to receive these benefits owing to the change in circumstance.

Is equity release safe?

Yes – equity release is a tried-and-tested method of earning additional income towards the end of your life, so it is very safe. If you jump into it, you could be taking unnecessary risks, so we recommend carefully considering which equity release scheme you would like to opt for and seeking the appropriate legal advice.

Always ensure your provider is a member of the Equity Release Council (ERC), as this organisation serves to regulate providers and ensure they are meeting high standards in order to prevent them from overcharging you or introducing negative equity.

It is also advisable to make sure your provider is in the FCA register, as they also have high standards for lending money, and they can also be of great value if you need to make a complaint about your provider at any point, as they specialise in resolving complaints.

What are the things to consider before I apply for equity release?

Before you do anything else, check whether you are in the position to be able release equity, as you don’t want to go through the process of requesting funding only to realise you are not eligible.

You should also consider whether equity release is right for you. Is it something that would be more beneficial or more detrimental to you and your family?

For example, if you are intent on leaving a large inheritance, you may want to consider other options. If you are claiming benefits and participating in this scheme would lead to the removal of these benefits, this is another thing to consider.

Make sure you choose a reputable financial advisor who is willing to inform you of the benefits and withdrawals of releasing equity, as well as explain the difference between the two options, lifetime mortgages and property reversion.

Your financial advisor should be offering tips on how to make the most of equity release, such as withdrawing smaller amounts when you need them, as interest is only charged on what you withdraw and this means you will be paying less interest overall.

Finally, make sure you are prepared to stick with this scheme for the rest of your life, as you do not want to be dealing with early repayment penalties.

How Much Does Equity Release Cost?

Whilst you do not have to repay your equity release loan whilst you are still alive, there are still a number of costs associated with equity release. The money that is released to you is also tax free.

However, it is important to not forget that as with any type of loan, including equity release loans, you will be charged interest. Whilst these interest rates will always be fixed, they will turn into compound interest and will continue to compound every year that the loan continues. As the loan lasts for a sling as you live, this could add up to a substantial amount.

It is also important to remember that with any equity release loan, you are able to repay your loan whilst you still live if you choose to do so. This will always be optional, but it is recommended to a number of people who can afford to do so, as it will work to reduce the overall loan amount and compound interest.

If you opt for a home reversion plan, then you should be prepared to sell a percentage of your home (usually starting from 25%) in return for access to the equity that has built up in their home. You will be selling this percentage of your home to the lender, who will ask for less than the market value of your property.

There are also a number of set up costs associated with equity release, including the application fee, the cost of an equity release solicitor and the cost of the application fee.

The most costly part of the application process is usually paying for an equity release solicitor, which could cost up to £1,000 or more, depending on who you opt to go with.

You will also be charged arrangement fees, which could add up to anything between £500 and £3,000 depending on the complexity of your equity release application and loan.

Can You Release Equity If I Am Under 55?

With all equity release plans, you have to be aged at least 55 years old if you would like to qualify for a lifetime mortgage and you must be at least 65 years old if you want to qualify for a home reversion plan [1].

Unfortunately, there are currently no equity release schemes which allow you to release equity from your home if you are aged below 55 years old.

Whilst this might seem disappointing for some, it is important to remember that when it comes to equity release, your loan lasts for as long as you live and grows in interest every year that you are alive.

Therefore, if you were to get an equity release loan younger than 55 years old, you could end up owing a substantial amount of money by the time you pass away or move into a care home.

This is why equity release lenders and providers do not offer equity release to those younger than 55 years old [1].

However, whilst this might be disappointing there could be some better options available to you if you do not want to have to wait to turn 55 years old to apply for an equity release scheme [1].

For example, you could opt to sell your property and downsize to a smaller and cheaper property, which means that when you sell your house and buy another one, you will get to keep the difference.

Likewise, you could always get a part time, retirement job to see you through your retirement and to top up your pension. This could be working for a local coffee shop, local clothes shop or DIY store.

If you don’t mind having a lodger, then you could always rent out a room in your property to someone who needs it.

This could be a friend or a family member, and can be incredibly helpful if you live in a city centre where your grandchildren might struggle to afford to pay rent.

Can You Be Refused Equity Release?

Yes, you can be refused equity release if you do not meet your lender qualification criteria.

There are a number of different qualification criteria factors associated with equity release, including your age, your health, the condition and value of your property and what materials were used to build your property.

For example, you will not be approved for equity release if you are below the age of 55 years old, if your property is below the value of £70,000 or if your property has been built using non-standard materials.

You will be approved for equity release if you are tenants in common or joint owners, but your application might be more difficult if your property is a leasehold and there aren’t many years left on the leasehold.

Likewise, you might be rejected for an equity release plan if you suffer from a poor credit score, have ever been in debt or have ever been hit with a CCJ.

If you do have a poor credit score, then it’s not impossible to qualify for an equity release plan, but it is more difficult.

Can I Release Equity If I Have A Mortgage?

Lots of people who consider equity release as an option are doing so because they have already paid off a significant amount of their mortgage and believe that they have a significant amount of equity built up inside their property.

However, some people still have a mortgage when they apply for an equity release scheme. This can make your application process more difficult and might reduce the amount of lenders who will accept your application.

Most lenders will only accept you if you have already paid off your mortgage, although some might consider you if there is only a small amount of money left to pay off.

Some people might choose to pay off the remainder of their mortgage when they receive their equity release money, which again is allowed as long as there is only a small amount of money left on their mortgage.

What is a redemption statement?

A redemption statement is a notice given to you, by your bank, which states how much money is left to pay off on your traditional mortgage. You will get to see how much interest you have already paid on your mortgage and how much interest is left to pay [2].

If you do still have a traditional mortgage by the time you come to apply for an equity release loan, then you should be prepared to send this letter to your chosen lender as proof of how much you have left to pay.

If you do receive your redemption statement, then you will have to act fast and make a decision about what you want to do pretty quickly [2].

If you want to apply for an equity release scheme but still have a traditional mortgage to pay off first, then talk to an equity release adviser about how you might be able to pay off your mortgage in order to get approved for a loan.

Can I Use Equity Release To Pay Off My Mortgage?

Yes, lots of people choose to take out an equity release scheme and pay off the remainder of their traditional mortgage once they receive their equity release funds.

In fact, taking out an equity release scheme is often driven by a desire to be mortgage free.

Increasing mortgage and interest rates are making it increasingly difficult for homeowners to afford and pay off their monthly mortgage payments, which is why it is increasingly more desirable to be mortgage free.

Lots of people hit their mid-fifties and want to reduce their working hours, which could make it incredibly difficult to afford their monthly mortgage payments.

Naturally, taking out an equity release plan is the perfect option, as there are no mandatory payments to make whilst you are alive, as the loan is only ever paid off once you pass away and the property is sold.

Can I Release Equity When I Remortgage?

You release equity by taking out a new, lifetime mortgage. Therefore, you are allowed to remortgage and take out an equity release plan at the same time.

However, you are not allowed to take out an entire new mortgage and a lifetime mortgage at the same time.

It is important to look at equity release as another form of loan, which will need to be repaid at some point.

It is also important to understand that taking out an equity release loan is a risk, as technically house prices can go up and down depending on the housing market.

Nevertheless, it is also important to remember that even if your property decreases in value and no longer covers the cost of the loan once you pass away and the house is sold, the lender is responsible for covering the difference and not your children, grandchildren or next of kin.

Lots of people get confused between equity release plans and remortgaging. The key difference between the two different types of loans is that with equity release plans, you do not have to make any monthly mortgage payments.

However, you do have to make monthly payments when you remortgage your home.

If you are confused between remortgaging and taking out an equity release plan, then talk to a member of our team at Equity Release Warehouse for more help and support.

Can You Release Equity On An Interest Only Mortgage?

Yes, you can release equity on an interest only mortgage. Your interest only needs to be coming to an end and you must use the money that you receive from your equity release plan to pay off your interest-only mortgage.

What is an interest-only mortgage?

An interest-only mortgage is a type of mortgage that allows individuals to only pay off the interest on their mortgage each month. Your interest rate will be fixed for a few years at a time, and will change in line with interest rates.

You will not have to pay off the initial mortgage and loan amount, only the interest on a monthly basis. This means that your monthly mortgage / interest payments are lower than with a traditional mortgage.

Nevertheless, at the end of your interest only mortgage term, you will have to repay the original mortgage and loan amount. This will be in one large lump sum, which most people pay off by selling their property.

In order to qualify for an interest only mortgage, you will have to provide your chosen lender with proof that you will be able to pay off the lump sum at the end of your term. This might be proof that you already have that sum amount in your account, or some form of inheritance [3].

Can You Release Equity From A Buy To Let Mortgage?

Yes, there are specific buy to let equity release schemes that could be the ideal solution for you if you want to release equity from a buy to let mortgage and property. This type of equity release plan is ideal for anyone who owns a buy to let property and mortgage.

This means that if you are a buy to let homeowner, then you could still release equity from your home, which will allow you to maximise your wealth and income during your retirement years.

This is now a really popular type of equity release plan, as there is no minimum income necessary to qualify for this type of equity release loan and there is also no need to make any monthly mortgage repayments.

It is also important to remember that with every equity release plan, interest rates are fixed for the entire term of the loan. This means the amount of interest you are charged will not fluctuate, but it will compound.

You can learn more about compound interest here.

How Long Does Equity Release Take?

Unfortunately, the amount of time it takes for an equity release scheme to process very much depends on your specific loan, application and lender.

Taking out an equity release plan is certainly not an overnight thing. It can take a number of months to process, similar to a traditional mortgage or even buying a property.

Some lenders state that it can take anywhere between 6 and 8 weeks to process your equity release application, as there are a number of steps that need to take place before they can release the funds to you.

The first step is often the most time-consuming. This first step is your research period, where you will need to go online and research equity release.

You need to be confident that equity release is the right choice for you, and it is always recommended that you speak to your family and next of kin about this.

Next up, you will need to speak to an equity release adviser about your plans. They will help you to apply for an equity release loan with your chosen lender.

Once you have applied for your equity release loan, you will then need to have your property valued by the lender. They are doing this because they want to be sure that they will get their money back once you pass away or move into a care home.

Your lender will then offer you an official mortgage offer, and your chosen solicitor will then work to draft up the necessary contracts and paperwork.

They will carefully assess the terms and conditions of your equity release loan and offer and will talk to you on a regular basis over a number of weeks to ensure that you understand your loan and what you are signing up to.

Next, you will be able to complete your on loan application, meaning that you will be given a date when the money will be sent across.

As you can imagine, this process can take a number of weeks and will very much depend on the efficiency of your solicitor, which is why it is incredibly important to choose an equity release solicitor who is well experienced in dealing with equity release applications and loans.

How Much Equity Can I Release?

How much equity you are able to release from your home depends on a number of different factors. Most lenders state that individuals are able to release anything between 20% and 50% of the value of your home.

Put simply, the older you are and the more expensive your home, then the more equity you are able to release from your property.

This is because equity release plans are loans, which means that the lender wants their money back as soon as they can.

Therefore, the shorter your life expectancy and the older you are, the more money you are able to release and the more likely you are to be approved for an equity release plan.

What Is The Minimum I Can Release?

Lots of people are curious when it comes to the minimum amount of money that they are able to release from an equity release plan.

This is because equity release plans are another form of loan and debt, which some people might want to keep to a minimum. Whilst they might need access to their equity now, they might not want to release more than they need.

As the amount of money you are able to release depends on the value of your property, this can be an incredibly hard question to answer.

Most people are limited to releasing a minimum of 10% of the value of your property, which could still mean that you are able to release a substantial amount.

What Percentage Can You Borrow On Equity Release?

Usually, individuals are not able to release anything less than 10% of the total value of your property.

Obviously, the more expensive your home is, then the more this percentage will be. Most lenders only really allow people to release up to 50% of the property’s value with lifetime mortgages, although this does depend on specific circumstances.

Some lenders do allow you to release up to 60% of the value of your property, but this will heavily depend on your age and on your health.

This is typically the case with most lifetime mortgages. When it comes to home reversion plans, you are able to release up to 90% of the value of your property, as you sell off a percentage of your home to the lender.

What Percentage Of My House Value Can I Release?

If you are considering taking out an equity release plan, then it is important that you understand what the loan to value ratio (LTV) is when it comes to equity release [4].

This LTV ratio refers to the amount of money that you are able to release from your home, depending on the total value of your property.

As discussed above, most people are able to release at least 20% – 60% of the value of your home, with lifetime mortgages. With home revision plans, you are able to release up to 90% of the value of your home, and sometimes up to 100%.

There will be different loan to value ratios, depending on which lender you choose to go with. It is always worth shopping the market, with the help of an equity release adviser to find the very best loan-to-ratio value that works for you [4].

If you want to release equity from your home, but are confused about the loan to value ratio of how much you are able to release, then talk to our team at Equity Release Warehouse for more help and support.

Can You Do Equity Release More Than Once?

Yes, you are able to release money from your property twice but there are a number of factors that will need to be in place in order to do so.

Most lenders do allow you to release equity from your home twice because there still might be more money locked up and available for you to release in your home.

If you want to release equity from your home again, then it is always advised that you speak to an equity release adviser again to ensure that you are taking out the right type of equity release loan for you and your current circumstances.

Will I Have to Make Monthly Repayments with Equity Release?

The great thing about equity release is that it is not mandatory to make monthly repayments, like with other types of equity release loans. This frees up your funds for lots of different things, including a family holiday, home improvements, a nice car or just simply a better lifestyle [5].

However, if you choose to do so, you are able to repay some of your loan early either in one large lump sum or through a number of smaller monthly repayments. This will go a great way to reducing the overall loan amount, which might mean that there is more money left over to your loved ones in inheritance.

It is important to remember that if you do repay your loan early, then you will be charged early repayment fees. So, if you are considering repaying your loan back early through monthly repayments, then you should speak to an equity release solicitor and advisor before doing so [6].

What Is Compound Interest On Equity Release?

If you want to release equity from your home, then it is important to understand what compound interest is and how it works.

Compound interest is the interest that you are charged on the original equity release loan, as well as the accumulated interest that you are charged month on month. This means that you are being charged interest, on interest [6].

Unfortunately, compound interest means that your overall loan amount will increase for every year that your loan continues. This means that your loan is growing year on year and will accelerate at a fast rate [7].

There are different ways that you can be charged interest, either on a daily, monthly or yearly rate. This should be clearly stipulated on your equity release contract.

What Is The Average Interest Rate On Equity Release?

This is a really difficult question to answer, as the interest rate you are charged on your equity release loan will depend on a number of different factors.

There are a number of low-interest rate loans which you will be able to opt for, and all equity release loans have a fixed interest rate, meaning that the amount of interest you are charged on your equity release loan will not change or fluctuate over the duration of your loan.

If you want to keep the amount of interest you are charged on your loan as low as possible, then you should opt for a home reversion plan, a lump sum plan or an enhanced lifetime mortgage.

Why Compare Equity Release Providers?

There are a number of reasons why you should compare equity release providers. Every equity release advisor will always recommend that you consider a number of different loans and providers to ensure that you are making the right decision for you.

When comparing equity release providers, there are a number of things that you should consider, some of which are listed below for you.

Always look at the interest rate of each equity release loan
Always consider the lenders which offer inheritance protection
Consider companies which offer a no negative equity guarantee, which all legitimate providers should offer according to the Equity Release Council
Only ever consider lenders which are back of the Equity Release Council
Always look into the application fees, to see how much they would charge you
Always check which type of properties each lender considers, as not all equity release lenders will accept all types of properties
Check that they offer lifetime mortgages, home reversion plans as well as lump sum and drawdown plans.

There are a number of different providers, some of which are listed below.

LV
Aviva
Scottish Widows
Sun Life Financial
Canada Life
Responsible Lending
OneFamily
More2Life
Legal & General

If you are confused as to which equity release lender you should opt for, then talk to a member of the team at Equity Release Warehouse for more help and support.

Which Banks Do Equity Release?

There are a few, limited banks which do offer equity release loans themselves. Most banks based in the UK simply work with lenders, instead of offering equity release loans directly.

Therefore, there are only limited banks which offer equity release loans themselves. In fact, there are only really two high street banks which offer equity release loans, including Lloyds and Nationwide.

Lloyds also own a few other high street banks, including Halifax, Bank of Scotland and Scottish Widows. Unfortunately, HSBC, NatWest and Santander do not offer equity release loans directly [7].

Legal & General are known as one of the best equity release providers, and have won many awards. They have their own equity release advisers who will be able to recommend the right type of equity release loan for you and won’t charge you to do so.

Sun Life is also another really popular provider when it comes to equity release and you have probably seen their TV adverts on the silver screen for years now. They have a really great reputation and have more than 80,000 clients up and down the country who recommend their services.

Aviva is also another great option, which offers a wide range of financial support, as well as equity release. They were named the best equity release lender in 2020 and continue to gain a popular reputation up and down the country.

If you want to apply for equity release, then it is important to understand that there are a number of different qualification criteria, which differ across each lender. For most lifetime mortgages, you have to be aged at least 55 years old, own your own home in the UK and your property must be worth at least £70,000 and be your main residence.

How Do You Pay Back Equity Release?

You do not have to repay your equity release loan until you either pass away or move into a care home. When this happens, your house will be sold. The money that you get from the sale of your home will be used to pay off the loan, including any interest that has compounded onto your loan.

If you want to try to reduce the overall loan amount that will need to be repaid upon your death, then you can opt to make early repayments. However, you might be charged for doing so [8].

Can Equity Release Be Repaid Early?

Yes, equity release can be repaid early, although whether you are allowed to do so or not will depend on a number of different factors.

Generally, people tend to avoid repaying their loan back early as they will be charged a significant amount for doing so. Also, most people opt for equity release because they want financial freedom and do not want to be tied down to any monthly mortgage repayments [8].

In addition to this, as most houses will increase in value significantly, the sale of your house will always pay off the overall loan amount once you pass away, in most circumstances.

However, there are a few reasons why people would need to repay their loan early. For example, if you want to downsize your property or move to a bigger house then you might need to repay your loan early.

If you come into a large sum of money, for example, inheritance, then you might be in a position to repay your loan early. Likewise, some people simply decide that equity release is not for them. In these circumstances, it might make more sense for someone to repay their equity release loan early [8].

If you are considering repaying your equity release loan, then you should always check how much you would be charged with your equity release adviser and your equity release lender.

Can Equity Release Be Repaid Before Death?

Yes, as discussed above, your equity release loan can be repaid back early, before you pass away or move into a care home.

You are able to pay off your equity release loan before your death, if you should choose to do so. This means that your overall loan amount will be reduced and you will not be charged as much interest on your loan,

Additionally, you will also likely increase the chances of leaving your loved ones’ inheritance, as there might be some money left after the sale of your home.

How Much Are Early Repayment Charges On Equity Release?

Early repayment charges, also known in the industry as ERC, are what you will be charged for trying to repay your equity release loan early. How much you will be charged depends on a number of different factors, but is usually between 1% and 5% of the outstanding loan amount.

How Does Equity Release Affect Inheritance Tax?

One of the best things about equity release, and one of the reasons why millions of people are opting for equity release, is that you do not have to pay any inheritance tax on the money that you release from your home. However, there is a catch in that the funds that you release from your home must not exceed a certain amount.

This is because any money that you receive from your equity release plan is classified as a loan, which are always exempt from any form of tax because they are not a form of income.

Likewise, it is important to understand that opting for equity release does not mean that you are stopping your loved ones from gaining access to their inheritance.

Whilst your loved ones might end up getting less inheritance than if you had not opted for equity release, you will still be able to leave a significant amount of inheritance to your loved ones.

By taking out an equity release loan, you will be reducing your estate’s value, which means that your value will usually be below the inheritance tax threshold, meaning that you do not have to worry about you or your loved ones paying inheritance tax.

What if I am above the inheritance tax threshold?

If you are above the inheritance tax threshold, then you have to pay off this amount within six months of your loved one passing away. This is why it is incredibly important to get your finances organised before you pass away, so that your family knows exactly what to do and when. Currently, you will be charged 40% for inheritance tax.

Can Equity Release Stop me Leaving an Inheritance?

Unfortunately, lots of people wrongfully believe that opting for an equity release loan will stop them from leaving any form of inheritance. However, this is not the case.

Your loved ones and their inheritance will still be protected because all equity release schemes, according to the Equity Release Council, should benefit from a no negative equity guarantee, meaning that even if the sale of your house does not cover the loan amount, your loved ones will never have to pay off the remainder of the loan.

Likewise, you are able to leave your loved ones more inheritance by paying off parts of your equity release loan as you go, whilst you are still alive. This can be done on a weekly, monthly or yearly basis, depending on your personal circumstances and what you would prefer. You also might be able to pay off a lump sum all in one, if you come into a significant amount of inheritance.

However, it is incredibly important to read your contract(s) very carefully when opting for an equity release loan. It is also important to consult with an equity release specialist when applying for equity release, so that you have a full understanding of how it works and whether or not you would be able to leave inheritance or not.

Taking out any form of loan is a risk, which is why it is incredibly important that you fully understand the consequences of your decisions, and so do your loved ones and next of kin(s).

At Equity Release Warehouse, we always recommend that you speak to your loved ones and next of kin(s) about equity release and how it might affect their inheritance. It is incredibly important that they understand how it works and what it might mean for them.

Could I End Up Owing More than My Home is Worth?

Finally, one of the most frequently asked questions about equity release is whether or not individuals can end up owing more money than their property is worth. Luckily, all equity release plans benefit from a no negative equity guarantee. This means that you will never owe more than what your property is worth.

Whilst most properties will always increase in value over the years, there is a chance that your property could decrease in value meaning that the proceeds from the sale of your house no longer covers the loan amount.

Some people might fear that if this were to happen, then their loved ones would be left responsible for paying off the difference. However, with a no negative equity guarantee this is never the case and your loved ones and their money will always be protected.

If you are considering taking out an equity release loan, then you must always check that your lender offers a no negative equity guarantee as part of their loan and that this is clearly written into your contract.

Do I need a solicitor for equity release?

Yes, if you want to take out an equity release loan then you must first instruct an equity release solicitor. This is an incredibly important part of the process, as they will be able to act on your behalf and ensure that all is above board before you commit to an equity release loan [9].

Most lenders will not even consider you for an equity release loan until you have engaged and instructed a solicitor, so it is incredibly important to understand that you do need one before officially applying for an equity release loan.

You should always try to choose a solicitor who you have used before, or who is used to dealing with equity release loans. You will have used a solicitor when first buying your property, so it is always recommended that you try to use the same solicitor, only if they still have a good reputation and are experienced in dealing with equity release schemes [9].

When do I need to engage a solicitor?

You should try to engage a solicitor as early on as you can and certainly before any valuation of your property takes place. This will not only speed up the application process for you but it will also ensure that your solicitor has been involved since the start, so knows your property and your application well.

Your solicitor will ensure that you are well aware of the benefits and cons to taking out an equity release scheme, and fully understand what equity release might mean for your future. They will need to talk to you about how opting for equity release might mean that you end up leaving less inheritance than originally planned to your loved ones and next of kin(s) [9].

How do I choose an equity release solicitor?

Lots of people get overwhelmed by the idea of choosing a solicitor to use when it comes to their equity release application. However, choosing an equity release solicitor is a relatively straightforward process, as long as you follow some simple rules.

You only need one solicitor when it comes to applying for an equity release scheme but this solicitor must be experienced in dealing with equity release loans and applications.

You should always try to use a solicitor who you have used before, or who at least has a good, local reputation. If you’re ever in doubt, take a look at their online reviews or ask locals for good recommendations.

You should always opt for a solicitor who works in a relatively large law firm. This means that they should not be a one-man band. Instead, they should work at a law firm with at least 3 – 4 other solicitors working there.

Your equity release solicitors will be working closely with your equity release adviser, so it is important that they are introduced to each other over email at some point.

What does a solicitor do during the equity release process?

Lots of people roll their eyes when it comes to the cost of a solicitor. Unfortunately, people become very frustrated when the conveyancing process takes so long. However, it is incredibly important to understand that the role of an equity release solicitor should not be overlooked or taken for granted.

In fact, solicitors play a vital role in any equity release application. Below is a detailed explanation of exactly what your equity release solicitors will be doing during your application and conveyancing process.

1. Open Your Case

Your equity release solicitor will open your case on their system and on the lender’s system. This means that they will be able to send you your unique reference number, to make sure that they don’t get you confused with any of their other clients. If you need to contact your solicitor, then make sure that you cite this unique reference number, to make sure that they know exactly who you are.

2. Send You Your Welcome Pack

The second thing your equity release solicitor will do is send you your welcome pack. Every client will get one of these, and it will lay out all of the necessary information that you need to know at this early stage.

At this stage, you will need to fill out a number of forms, which could include a number of personal details, including copies of your ID and passports, as well as your bank details, employment history and last five addresses.

3. Check the Title Deeds

Next, your solicitor will check your title deeds, as well as the ins and outs of your existing mortgage if you still have one. Your solicitor will need access to these, which you should still have from the original sale of your property.

4. Official offer

Your solicitor will then make your offer official. Your lender will likely also send you details of this, but it is important that you respond to this official offer stating that you have received this offer.

5. Signing the Meeting

Next, you will need to meet up either in person or on zoom with your solicitor, where you will be able to ask them any questions that you might have concerning your official offer. You will then need to sign a contract, which will also be signed by your solicitor and lender.

6. Identity Checks

Before your solicitor can do anything else, they will need access to your ID so that they can perform an identity check. You will also need to provide POA (proof of address) to your current address. This address will need to match that which is on your driver’s licence.

7. Requisitions

Next, your solicitor will ensure that there are no final questions on either side of the agreement. If there are no requisitions or questions, then the application process will continue. If you or the lender does have any questions, then this might delay the process slightly but is always a necessary part of the process to ensure that everyone is happy and are also fully aware of what is happening.

8. Completion

Finally, your solicitor will be able to complete your application. This means that they will move the money across, and will also ask you to pay them for their services. They will give you a specific date when you should expect to see the funds in your account, which could differ between a few days or a week or two.

How Much Are Solicitors Fees For Equity Release?

Solicitors are a non negotiable when it comes to applying for an equity release loan. This is why so many people wonder how much solicitors cost when it comes to equity release.

Unfortunately, the cost of an equity release solicitor does differ, depending on a number of different factors. However, most people find that an equity release solicitor usually sets them back approximately £1,000, including VAT [10].

It is important to remember that there are also a number of other fees associated with equity release, including the initial cost of your application fee, your house valuation fee and potentially even the cost of an equity release adviser.

If you want more information on the cost of an equity release solicitor or how they work, then talk to a member of the team at Equity Release Warehouse for more help and support.

Does equity release affect state pension?

No, taking out an equity release loan will not have an impact on your state pension. In fact, most people take out an equity release loan because it’s a great way of topping up your pension.

Lots of people who are already receiving a state pension tend to take out a drawdown plan, which allows them to supplement their monthly income (pension) with their equity.

However, it is important to understand that taking out an equity release loan will have a large impact on any means tested benefits, as explained below.

How Does Equity Release Affect Means Tested Benefits?

Equity release will have a huge impact if you receive any means tested benefits. These are benefits which you receive from your local Council which are based on your current income and amount of savings in the bank. This includes things such as Universal Credit and Council Tax Reduction.

By taking out an equity release loan, you might be at risk of losing these benefits, which would have a huge impact on your finances as well as most probably your mental health. Whilst not every type of equity release loan will interfere with your means tested benefits, some do, which is why it is important to understand what types of loans would affect your benefits and what would not.

If you have taken out an equity release loan and your means tested benefits have stopped and you are not happy about it, then rest assured that your equity release loan will be more than your benefits, meaning that you should be better off anyway.

If you want to take out an equity release loan but are worried about whether your means tested benefits would stop, then there are many different benefits calculators that you can use.

You can also talk to a member of our team at Equity Release Warehouse, where our team of specialists will ask you what type of benefits you currently receive and will be able to check for you as to whether or not they would be affected by applying for an equity release loan.

Whilst searching the internet for answers will always help, nothing beats a face-to-face discussion. We get to know you and your circumstances and will therefore be able to recommend the very best equity release plans for you and for your family.

How Does Equity Release Affect Pension Credit?

According to Age UK, your entitlement to pension credit might be affected if you take out an equity release loan. This is why you should always seek independent, legal advice before taking out a loan to see how things such as pension credit might be affected [11].

If you are currently receiving pension credit, or plan to in the future and are also considering taking out an equity release loan, then you should talk to a qualified specialist who will be able to navigate your decision for you. Our team at Equity Release Warehouse are on hand to answer any questions that you might have about pension credit or any other types of means tested benefits.

How Does Equity Release Affect Council Tax Benefit?

Equity release will impact any means tested benefits that you receive or plan to receive in the future. This means that by opting for equity release, your council tax benefit might be reduced or even stopped altogether.

If you have at least £16,000 in your savings bank, then any additional money you receive, like your equity release, will force your local council to stop your council tax benefits.

Again, as your equity release money is likely to be quite high, then it is more than likely that your equity release money will be significantly more than your council tax benefit, so you shouldn’t have to worry too much.

If you want to release equity from your home but are worried about how this might affect your council tax benefits, then talk to a member of our team at Equity Release Warehouse.

Can Tenants In Common Apply For Equity Release?

Yes, you are able to take out an equity release scheme if you are a tenant in common, but it is important to understand that your equity release plan will continue until the last tenant in common passes away.

When you first bought your house all those years ago, you would have had to declare whether or not you were a tenant in common or a joint tenant. It’s incredibly important to know whether you are a tenant in common or a joint tenant, not just for equity release purposes but just generally, as this would become incredibly important if you were to separate and sell your property.

Whilst most people tend to forget whether they are a tenant in common or joint tenant over the years, which is incredibly normal, it’s important to familiarise yourself with the differences between the two forms of ownership if you are to opt for something like equity release.

What are the differences between a joint tenant and a tenant in common?

A joint owner / tenant is when each person owns 100% of the property, meaning that everything would be split 50 / 50 if anything were to happen. If one individual passes away then the other would inherit all of the individual’s share of the property.

However, when you are a tenant in common each owner of the property owns a particular share, which could be split whichever way you want. Someone could own 90% of the property, whereas the other owns just 10%.

If one individual were to pass away then their share will always go to the individual’s next of kin(s). This is usually the case when someone pays a lot more for the deposit of the house, compared to the other person.

Can I Rent Out My House If I Have Equity Release On It?

Lots of people want to know whether you are able to rent out your house for an additional form of income after you release equity from your home. Unfortunately, you are not able to do this.

If you do want to start renting out your property as a form of income to someone else, then we would recommend that you avoid taking out equity on your home. Remember, your equity release loan lasts for as long as you or your partner lives, and you will have to pay a significant penalty if you want to opt out of your equity release scheme early.

If you already own a rental property which is giving you some form of income, then you might be curious to learn whether you can release equity on this property. Again, you are not able to do this. Most equity release plans only accept individuals who live in their property full time, which does not include rental properties.

What if I want to have a lodger in my home?

As discussed above, you are not able to rent out your property to a tenant when you opt for equity release. However, you might be able to house a lodger. You would need to ask your advertiser and lender to check to see if this would be allowed, but many lenders do allow this if the owner of the property abides by the rules.

One of the most important things to ensure when housing a lodger when you have an equity release scheme in place is that your lodger understands that you have released equity and that they have no rights to the property. The lodger must also understand that when you pass away or move into a care home, then the property must be sold and they must move out of the property.

If you want more information on whether or not you would be able to rent out your property after taking out an equity release plan, then talk to our wonderful and helpful team at Equity Release Warehouse.

Can You Get Equity Release On A Property In Trust?

Yes, you are now able to release equity from a property if that property has been held in trust or is currently being held in trust. Whilst this did not used to be the case, the industry and qualification criteria is changing all the time.

Whilst taking out equity on a property that has been held in trust is now allowed, it is more difficult, time-consuming and complicated. For example, you will need to ask your solicitor to get consent from everyone who is linked to the trust, stating that they allow you to release equity from the property. Whilst this is achievable, it can take a significant amount of time.

You will also need to find an equity release solicitor who has had previous experience in working with properties in trust, as they will need to draw on their past experiences to ensure that everything goes well. Your chosen solicitor should always be a member of the Solicitors Regulations Authority (SRA) which is a regulatory body which ensures that all solicitors are up to scratch and are well qualified.

If you are considering releasing equity from a property that is in trust, then you should think very carefully about your current situation, your future situation and how releasing equity might impact those around you.

There are a few disadvantages when it comes to equity release, but releasing equity from a property in trust can’t have huge advantages for both you and your family. You will gain access to your money within a few weeks, and will be able to spend this money on whatever you want.

Can Equity Release Be Transferred To Another Property?

Despite what many people think, you are able to transfer your equity release plan to another property if you should choose to do so. All equity release plans that are approved by the Equity Release Council will allow you to port your equity release plan to another property, as long as it meets certain qualification criteria.

This is certainly the case with lifetime mortgages. However, it can be incredibly hard to transfer your equity release plan to another property if you opt for a home reversion plan. This is because you do not own a percentage of your property if you opt for a home reversion plan, meaning that you are not in a position to sell up and move.

Why might I not qualify to transfer my equity release plan onto another property?

There are a few different reasons why you might not be able to port your equity release plan onto another property. For example, if the property you are buying is not made out of standard material, then you might not be able to transfer your equity release plan.

If your property is part of a retirement home, then you will not be able to transfer your scheme across. Likewise, you will not be able to transfer equity release plans if the property that you are buying is a leasehold property with only a few years left on your leasehold. If this is the case, then you might be able to extend the terms of your leasehold property in order to qualify for equity release [12].

Likewise, you might not qualify for an equity release plan if your property is at risk of flooding. This would become apparent during your survey and during the equity release lender’s valuation at the start of your application process.

As you can see, there is some strict qualification criteria, which is why it is important to speak to your equity release adviser and lender if you think that you would like to transfer your equity release plan onto another property.

Can You Get Equity Release On A Leasehold Property?

Thankfully, you are able to release equity from a property even if it is a leasehold. Whilst the qualification criteria is different to a traditional, freehold property you are able to release money as long as your property meets certain qualification criteria.

For starters, you must not be nearing the end of your lease, as your property needs at least 70 – 80 years left on the lease in order to qualify for equity release. You will also need a surveyor to survey the property and confirm that the property is in good enough condition to qualify for equity release.

This is because your chosen lender and provider will need to feel 100% comfortable in the fact that they will make their money back, which is why it is important that they come to visit the property themselves to carry out a home valuation.

If you do not have enough time left on your leasehold property, then you might be asked to extend your lease if possible. This is doable within a short time frame, but would add a bit of time onto your overall equity release loan application.

Can You Release Equity to Buy Another House?

The easy answer is yes, you are able to spend your equity release money on buying yourself a second home. This is mostly done through applying for a lifetime mortgage, but you do need to be very clear about what you plan on spending your equity release money on, as this will affect the type of plan your advisor suggests.

If you do want to spend your equity release money on a second home, then you must plan on living in this property until you pass away or move into a care home. You are not allowed to buy yourself a second home with the intention of using that second home as a rental property or as a second income.

Can I Sell My House If I Have an Equity Release Plan?

Luckily, you are able to sell your house if you want or need to after taking out an equity release plan. There are many myths surrounding equity release, and this is certainly one of them.

Thousands of people miss out on releasing equity from their home because they believe that once they do so, you will never be able to sell your house, no matter what happens in your personal life. This simply is not true.

At Equity Release Warehouse, we don’t want anyone to be put off releasing equity from their home just because they are afraid that they won’t be able to move house after doing so. Whilst doing so is possible, there are limitations when it comes to the types of houses that you are able to buy in replace of your equity release plan.

For example, you might not be able to move to a property if the property needs a lot of construction work, if the property is made out of non-traditional materials and if it is a leasehold property which doesn’t have much time left on the lease.

The property must also be worth at least £70,000. This is because your lender has only lent you the money in the first place because they are confident in the fact that they will get their money back when the property is sold after you pass away or move into a care home [13].

Therefore, when you move to a new property, the lender must also be confident that this new property will also make them their money back when it is sold.

Can Equity Release Be Transferred To Another Property?

Yes, as explained above, you are able to transfer your equity release plan to a new property if you choose to move house.

However, it is important to understand that there are a number of terms of conditions involved when transferring or porting your equity release plan to a new property. For example, the property you are moving to must not be below £70,000 and must be of similar value to your current home.

Your property must also not have any large construction work doing to it and if you are choosing to downsize property, then you must pay off a percentage of your equity release loan early.

If you want to apply to transfer your equity release scheme to a new property, then you will need to go through the application process like you did when you first, initially applied for equity release.

What Is the Equity Release Council?

The Equity Release Council operates throughout the equity release council, to ensure that all lenders and advisers are playing by the rule book. They monitor all lenders to ensure that they are fair and transparent in their offering.

It is their main objective to ensure that each plan is as safe as possible. Taking out an equity release plan is always a risk, but the Equity Release Council will ensure that all plans include a no negative equity guarantee as well as inheritance protection.

Unfortunately, the Equity Release Council used to have a bad reputation due to a number of scams taking place within the industry. Thankfully, the Equity Release Council has put a stop to this [14].

Not all lenders operate within the Equity Release Council’s guidelines. In fact, if your lender is a member of the Equity Release Council, then you will need to instruct advisors and solicitors who are also members of the Equity Release Council to act on your behalf.

It is highly recommended that you choose a lender and adviser who is a member of the Equity Release Council, as this ensures that you are getting a fair deal and are not getting scammed [15].

The Equity Release Council operates with four main principles, which are listed further below for you [15].

To act in faith
To deal with any conflict efficiently
To ensure that all actions promote public confidence in equity release across the country
To get the best outcome for their customers

If you want more information on the Equity Release Council and the part they will play in your equity release application, then talk to a member of our team at Equity Release Warehouse.

How can I use the money I get from equity release?

You can spend your equity release money on whatever you want, as long as it operates within the guidelines. Lots of people choose to spend their equity release money on themselves, to create a better lifestyle for yourself and your family during your retirement years.

This could include things such as a nice family holiday, a nice new car or a subscription to a health club or a golf club.

People work hard their entire lives to enjoy their retirement, which is why it is important to invest in yourself and your lifestyle during this time. Others give their money to their loved ones, to help them with the cost of University fees or a house deposit.

How To Release Equity For Home Improvements

One of the most popular ways to spend your equity release money is to make some home improvements around the house.

This is a great way of creating a more suitable and comfortable home during their later years. This will also add value onto your home, which will then be sold for more after you pass away and you have to repay the loan. Below are some examples of how home improvements could increase the value of your home.

Rear extension
Side extension
Wrap around extension
Double storey extension
Ramps
Handrails
Wet rooms
A new garden
A new kitchen

If you want to use equity release to make some home improvements, talk to Equity Release Warehouse for more information on how to get started.

How Does Equity Release Affect Care Costs?

Yes, taking out an equity release plan can affect your care costs in both a positive and a negative way. Of course, supplementing your pension with equity release frees up more cash to spend on your health and care.

However, taking out an equity release plan means that the money you receive in cash is counted as an asset. This means that you will not qualify for any council funded or reduced care costs in later life, as your assets will exceed the threshold.

If you are considering taking out an equity release loan but are worried about how this might affect your care costs, then talk to a member of our team at the Equity Release Warehouse.

How Does a Home Equity Loan Affect Your Credit Score?

In order to qualify for an equity release scheme, you will need to pass your chosen lender’s application checks, which will include a credit score check. Unfortunately, if you have a bad credit rating then this might negatively impact your chances of qualifying.

Taking out any form of loan will have an impact on your credit score. The more loans you apply for, the worse your credit score. This is why you should work closely with an adviser to ensure that you qualify for the first loan you apply for.

Can You Get Equity Release With Bad Credit?

If you do have a bad credit score, then there still might be things that you can do to get approved for an equity release loan. In fact, more and more lenders are accepting people who already have some form of debt, such as credit card debt, as long as that individual has created a proven track record of paying back their minimum payment on time.

Likewise, if you have a CCJ or an IVA might make it more difficult to get approved for an equity release loan, but it is not impossible as long as a certain time has passed and you have been working hard ever since to improve your financial situation and credit score.

It is incredibly important to prove that your debt has never put your house at risk at any point, so it is incredibly important to be open and honest about this if this is the case.

What are the Alternatives to Releasing Equity: Time to Downsize or Take Out an Unsecured Loan

One alternative to schemes involving the release of equity is to consider downsizing. This is ideal for people who want to avoid taking out a loan, and who are perhaps living in a house that is no longer fit for them i.e. not accessible or too large to maintain.

However, downsizing is not always the best option as some people need to keep the space they currently have in the house, the modifications they have made for their disability, or the location they live in, particularly if they have family nearby who frequently help them.

Another option is to take out an unsecured loan. This is based on your credit rating rather than your assets, so it is great for people who want to borrow money quickly and easily, knowing that they can pay it back in the near future.

However, the interest on unsecured loans is usually much higher, and you tend to get a smaller amount to lend which may cause you to have to pay back more throughout the scheme.

Charities That Help With Debt

Finally, there are programmes in the UK that are aimed at people in any sort of debt, and they can help you if you are struggling financially and you are not sure what your next step should be.

For instance, the National Debtline website is fantastic for providing users with information about how they can deal with their debt.

Not only do they have informative debt advice fact sheets, but they also have a webchat that allows users to communicate with an advisor anonymously. This service is open every weekday from 9am-8pm and Saturdays from 9.30am-1pm.

Grants to Help Pensioners Pay Their Bills

If you are over 60 and you are finding it difficult to keep up with your electricity bills in this stage of life, there are grants that can be provided to help you keep your house warm:

1. The Winter Fuel Payment

The Winter Fuel Payment is offered to people who were born before the 5^th August 1953 and who are in receipt of a social security benefit, including a state pension.

Recipients benefit from £100-£300 of funding which is crucial for some elderly people in the winter months, when electricity and gas bills rise.

2. The Warm Home Discount

Another helpful service is the Warm Home Discount, which provides pensioners with £140 to put towards their gas and electricity bills if they receive a low income.

This scheme is available for people living in Great Britain, but unfortunately, it does not extend to Northern Ireland.

3. The Cold Weather Payment

The Cold Weather Payment is another helpful grant, though it only comes in handy occasionally, as the funding is only provided when there has been an entire week of sub-zero weather conditions. Recipients are paid £25 to compensate this, which they can only receive if they are claiming certain benefits.

Are There Other Options For Financial Aid to Consider Before I Get Equity Release?

Though releasing equity is one way to tackle the problem of financial insecurity for older people, there are other ways to do this that should also be considered.

Get Advice On Claiming Benefits

If you are not currently claiming state benefits and you believe you may be entitled to them, we encourage you to look into this. Benefits are an essential source of income for many people, and it is easy to check whether you are eligible for them using online benefits calculators.

By using the free benefits calculator on the Policy in Practice website, you will be able to see how much money you could be receiving based on your current situation.

It is also helpful to find out how your benefits would be affected if you decided to opt for equity release, and this benefits calculator allows you to see how changes to your income can affect the number of benefits you receive.

Speak to an Adviser About Home Improvements

There is aid available for home improvements, which is particularly helpful if you struggle with mobility issues and your home is not currently designed to accommodate your disability.

Organisations such as Foundations, the National Body for Home Improvement Agencies in England, can advise you on how to make adaptations to your home, as well as point you to local funding that could relieve some of the financial burden.

Why Should I Consult Equity Release Warehouse For Guidance

You should reach out to us because we will equip you with everything you need to make an informed decision on releasing equity.

We are experienced in analysing our client’s personal situations and deciding which equity plan would be most suitable for them, and we are confident that our specialist equity release advice would also benefit you.

On our about us page, you will get a feel for who we are, where we started, and how we can help people like you. We also recommend heading to our plans page, where you can learn about the different ways you can release equity in great detail.

For lifetime mortgages, these include: lump sum plans, interest-only plans, enhanced plans, drawdown plans, interest-only plans, income plans, voluntary repayment plans, second home or holiday home plans, and buy-to-let plans.

We have also written extensively about other available plans, including retirement mortgages, retirement interest-only mortgages (RIOs), and property reversion plans.

Before getting in touch with us, you can use our equity release calculator to figure out how much you could release based on your home’s value among other factors.

However, we will provide you with a more accurate personalised quote either over the phone, or through our site when you enter your details here.

Contacting Equity Release Warehouse

To speak to one of our expert advisors, contact us on 0330 058 1579. We are open weekdays and weekends from 8 am to 8 pm, and we are always happy to help.

Alternatively, you can request a callback on our website, and we will be in touch as soon as possible.

We want to reassure you that you will not be obliged to take any action regarding releasing equity. When you contact us, it is our job to check your eligibility, inform you of your options, and encourage you to carefully consider whether this is right for you.

If you decide you are not willing to opt for an equity release plan after speaking to us, you do not have to commit to anything. We are simply here to offer advice and help you to take your next step (i.e. selecting the best form of equity release) if equity release is something that appeals to you.

References

[1] https://www.proquest.com/openview/3317f2d084153ba4bc32959027e1d3f0/1?pq-origsite=gscholar&cbl=32110

[2] https://www.natwest.com/mortgages/redemption-statement.html

[3] https://www.proquest.com/openview/3317f2d084153ba4bc32959027e1d3f0/1?pq-origsite=gscholar&cbl=32110

[4] https://www.halifax.co.uk/mortgages/help-and-advice/what-is-loan-to-value.html#:~:text=Loan%20to%20value%20ratio%2C%20or,you%20pay%20as%20a%20deposit.

[5] https://nationaldebtline.org/fact-sheet-library/equity-release-ew/#:~:text=You%20do%20not%20have%20to%20pay%20rent%20to%20the%20equity,when%20your%20property%20is%20sold.

[6] https://www.hsbc.co.uk/savings/what-is-compound-interest/

[7] https://www.ageuk.org.uk/information-advice/money-legal/income-tax/equity-release/

[8] https://www.gov.uk/guidance/how-to-repay-your-equity-loan-when-you-remortgage

[9] https://www.equityreleasecouncil.com/what-is-equity-release/faq/why-do-i-need-a-solicitor-to-help-me-through-the-equity-release-process/

[10] https://www.gov.uk/guidance/solicitors-guideline-hourly-rates

[11] https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs65_equity_release_fcs.pdf

[12] https://www.proquest.com/openview/3317f2d084153ba4bc32959027e1d3f0/1?pq-origsite=gscholar&cbl=32110

[13] https://www.equityreleasecouncil.com/what-is-equity-release/faq/what-happens-if-i-have-an-equity-release-plan-and-need-to-move-into-long-term-care/

[14] https://www.equityreleasecouncil.com/?s=rent&post_type=faqs

[15] https://www.equityreleasecouncil.com/about/standards/statement-of-principles/

Useful contacts

Equity Release Council – Phone: 0300 012 0239. Website: www.equityreleasecouncil.com

Financial Conduct Authority (FCA) register– Website: www.register.fca.org.uk

Financial Ombudsman Service – Phone: 0800 023 4567. Website: www.financial-ombudsman.org.uk

Law Society Website: www.lawsociety.org.uk 

Legal Ombudsman Phone: 0300 555 0333. Website: www.legalombudsman.org.uk

Society of Later Life Advisers – Phone: 0333 2020 454. Website: www.societyoflaterlifeadvisers.co.uk

StepChange Financial Solutions – Phone: 0808 168 6719 Website: www.stepchange.org 