Frequently asked questions.

Is there a minimum value for properties on which equity release is available?

Yes: providers will generally not accept properties which are valued at less than £70,000.

How much can I borrow?

The provider will instruct a surveyor to give a professional valuation of your property that would define the amount that could be released. How much can be released is also dependent on your age and that of your partner (if you are making a joint application) and the value of your property.

Medical enhancements are also sometimes available which can affect the amount or interest rates available.

How long will it take to access the funds?

Timescales will vary from provider to provider. However, it usually takes up to 8 weeks from the day your application is received by the provider to the day your money is received by your solicitor.

How much does it cost to release equity?

Equity Release set up costs include our advice fee, of £1,695, a potential lenders fee (this would only be recommended if advantageous to you), a valuation fee (currently these are free for most first time releases) and solicitors fee usually circa £990, including VAT and disbursements.

Could I benefit from a future property price increase?

If you take out a lifetime mortgage, the most popular type of equity release, you could benefit from any future increase on your property.

Is negative equity covered?

There are guarantees with some plans to make sure you can never pass on debt, or ‘negative equity’, in your estate.

Could I move home in the future?

If you wish to move home in the future, this is possible. It’s a rule of the Equity Release Council that a lifetime mortgage can be transferred or ‘ported’ to another property. Naturally the new property must be acceptable to the lender at the time of looking to transfer the lifetime mortgage, and they may expect that part of the loan is repaid if downsizing to a property of lower value – without any early repayment charges.

Do I have to make monthly payments?

Lifetime mortgages don’t require any regular repayments. Instead, a fixed or variable rate of interest is rolled-up against the loan so that you have nothing to pay during your lifetime.

Who could release equity?

In general you may be eligible to release funds from the value of your property if: You own your own home; and the youngest homeowner is 55 or over.