Frequently Asked Questions

Of course, and we recommend portable schemes because you never know if your circumstances will change. However, your Equity Release providers will need to assess the new property, to make sure it meets the lending criteria, and some of the loan may be repayable if the new property is worth less than the current one.

No. All funds loaned through Equity Release are tax-free. In effect, it was your money to begin with, so you already paid tax on it when you earned it.

This will depend on your age, the value of your property and your health. Some lenders will offer more than others, with varying terms and conditions, and we’ll consider all the options when we go over your situation. All schemes promise that even if the amount of debt is greater than the value of your house, neither you nor your beneficiaries will have to pay the lender. This is why the amount you can borrow is restricted to between 20% and 50% of the value of your property depending on your age.

Short answer: Yes. It is possible to ring-fence a portion of the value of your property to reserve it to pass down to the ones you love. We can discuss and make allowances for this when we set up your plan, and make sure that the loan and interest will not affect the part of the property value that you want to bequeath.

This will depend entirely on the scheme you choose, how much you have already released and if the lender is open to increasing the loan. If their criteria are met (usually to do with the housing market and security) then it could be possible.

Yes, you can switch plans. If your existing plan is not all it should be, we can find a better scheme to better suit your circumstances and arrange the switch. This may be subject to early repayment clauses, depending on your provider and the terms of your current loan.

Once you receive your tax-free money from Equity Release, the money loaned will accrue interest over time, which will add to the loan amount. This is known as ‘rolling-up’ the interest. Over time, interest is added to the interest already added to the amount of your loan. However, you can choose to pay the interest and even some capital back to the lender (e.g. 5% on a £20,000 loan equals £1,000 per year) so that the loan amount does not increase with time.

It’s not compulsory, but we do strongly advise you talk to your family about your plans, so that everyone is in the picture. We are also happy for them to attend our meetings if you wish or they can meet us separately and we can explain our advice. For more on this, please click through to our Family page.

It will not affect your state pension, but it will affect any benefits you currently receive that depend on how much money you have in savings or income. This includes pension credit, council tax reduction, savings credit and income support.

However, instead of taking a lump sum, you could use a drawdown method for a steady stream of smaller amounts that may keep you within the benefits threshold. It’s worth checking with your benefits office or local authority (their number will be on your statement) to confirm their policies. Who knows – you might find out about a benefit you were missing out on!

Yes, this is possible, but there may be charges for early repayment. Equity Release loans are designed to be kept up until you die or need to go into permanent care, so you should check with your adviser exactly what the terms are regarding this when you take out the plan.

Some schemes allow you to pay back 10% per year with no penalty, others offer lower early repayment charges after five years, or no charge at all after eight years. Again, it will depend on your lender and the terms of the deal.

Yes, you can release equity from a second property you already fully own. In the case of a holiday home, there will be conditions that it must be available for the sole use of the owner, or only let out for a maximum of 4 weeks consecutively. It must not be advertised as a holiday let anywhere. Also, to qualify as a second home in the eyes of the provider, you must spend at least 4 weeks of the year there, and it must not be in close proximity to your main residence.

With buy-to-let properties, it is also possible, and certain providers have set up dedicated buy-to-let Equity Release schemes to allow property owners to obtain capital to help grow their property portfolio, as well as give them an extra income.