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Equity release insights

Equity release can be a useful way to get extra income or help younger family members out financially. It's only available to people over the age of 55 who own their own home.

Equity release involves either taking out a loan (Lifetime Mortgage), which is paid off when your home is sold, or selling part of your home to a home reversion provider (Home Reversion plan).

What is equity release?

Equity release is a way of getting a lump sum of money by releasing part of the value of your home without having to move out.

There are two types of equity release scheme:

  • lifetime mortgages involve taking out a loan which is repaid when your home is sold or when you go into full-time care. You can decide if you want to pay the interest off regularly or just pay it all off at once when the loan is repaid.
  • home reversion plans involve selling a part of your home to a home reversion provider. They will own part of your home, but you won't need to move out.

Both types of equity release free-up some of the money that's in your home so you can use this as extra income or to help out family members. Many people use it to help their children or grandchildren onto the property ladder.

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How does equity release work?

Equity release works by allowing homeowners to access money that is tied-up in their property, without having to sell their home.

To release equity in your property, you must own the home you live in and be aged 55 or above.

You will need to get advice from a financial adviser before applying as you're not allowed to apply yourself they will need to complete the application for you. You'll also need to ask a solicitor to complete the legal side of the process, like you would if you were selling your property, but they will need to be an equity release specialist.

Once the equity release provider has received your application, they'll ask a surveyor to come to your home and value it to find out how much it's currently worth. Your solicitor will help you complete the paperwork needed and set a completion date, which is when you'll get the money.

Read more about how equity release works:

What is an independent financial adviser?

Equity release is a big financial decision, which may not be right for everyone. Therefore only a registered independent financial adviser can apply for an equity release scheme on your behalf - you can't apply yourself.

Independent financial advisers can help you understand your financial situation and tell you what the best options are for you.

They're called "independent" advisers because they're not paid by the providers they might recommend. So they won't suggest you do something with your money if it's not likely to be the best option for you.

OneFamily Advice is a team of independent financial advisers. While the team is part of OneFamily, the advisors will only recommend OneFamily products if this is the best option for you.

Find out more about financial advisers and how they can help you:

What can I use equity release for?

People choose to release equity from their home to:

  • give their family early inheritance
  • have extra income for retirement
  • make home improvements
  • pay off debt
  • buy something specific
  • financial support family members.

Learn more about common reasons people choose equity release: