Common questions answered
The money itself is tax-free – however, tax may be payable if you use the money to make an investment, put it in a savings account or secure an income.
The amount you can release will be entirely personal to you, as it is based on your age, home value and lifestyle. Factors such as inheritance, a joint plan with your partner and even specific medical conditions can increase the amount you can release.
You will need to use part of the money from your equity release to cover any remaining mortgage payments. Once you have done this, the money is yours to spend how you wish.
This is subject to certain conditions, but in general you can move into another property if it is deemed suitable by your property provider. An example of these homes would be those within a retirement complex.
It depends if your plan is joint or individual. If you choose an individual plan and need to go into care, you would have to sell your home and repay the equity you released – plus interest. If it is a joint plan, your partner can remain in the home.
There are some costs – legal, arrangement and valuation fees for example. You will either need to pay these upfront, or this needs to be added to the lump sum you are taking.
