Equity Release Questions Answered

A loan secured against your home, repaid when you die or enter care.

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You sell a share of your property for a lump sum while keeping the right to live there.

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Better terms available for people with certain health conditions or lifestyle factors.

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Access a reserve facility and draw funds as you need them.

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Yes — the rate is set at completion and does not change for the life of the plan.

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You can never owe more than your home is worth.

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Yes, by the Financial Conduct Authority (FCA).

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The industry body whose member standards protect consumers beyond the FCA minimum.

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Most high street banks don't offer it directly — the market is served by specialist lenders.

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The minimum age is 55 for most lifetime mortgages.

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Yes — 55 is the minimum age; LTV is typically 20–25% at this age.

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Yes — LTV of around 25–30% typically available at age 60.

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Yes — a common application age, with LTV reaching 30–35%.

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Yes — one of the most common application ages; LTV around 35–40%.

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Yes — LTV typically 40–45%; enhanced plans are increasingly relevant.

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Yes — no upper age limit; LTV can reach 45–50% at this age.

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Yes, but most lenders require at least 75 years remaining on the lease.

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Yes, but your existing mortgage must be repaid at completion.

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Possible, but lease length, floor level, and construction type all matter.

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Usually yes — lenders focus on property value, not credit score.

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Yes, but lenders apply a new build valuation discount.

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Typically 20–55% of your property value, depending on age.

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Compound interest, reduced inheritance, benefits impact, and early repayment charges.

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The loan grows over time and reduces what you leave behind.

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It can, because released cash counts as capital for assessment purposes.

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The loan reduces estate value, which may reduce an IHT liability.

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State and private pensions are unaffected; Pension Credit may be.

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Council tax band is unchanged; Council Tax Reduction may be affected.

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Yes — the proceeds are a loan, not income; no income tax or CGT applies.

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Typically 8–12 weeks from application to completion.

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Advice, application, valuation, formal offer, legal advice, then completion.

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A regulated specialist who researches the market and makes a personal recommendation.

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Yes — independent legal advice is a mandatory part of the process.

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Yes, but most plans carry early repayment charges.

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Before completion there is a cooling-off period. After completion, early repayment charges apply.

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Plans are portable to a new qualifying property; otherwise the loan is repaid from the sale.

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Yes, most plans are portable to a new qualifying property.

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Yes, most plans are available on a joint basis.

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Possible, but risks leaving a partner without a protected right to remain.

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The loan is repaid from the property sale; any surplus passes to your estate.

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The plan continues unchanged; the surviving partner retains all rights.

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The plan continues while the other partner remains living in the property.

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Permanent entry into long-term care triggers repayment of the loan.

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Yes — clearing an existing mortgage is one of the most common uses.

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Yes — gifting to family is unrestricted; the IHT seven-year rule applies.

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Best for funding home care; entering a care home permanently ends the plan.

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Yes — one of the most common uses; no restrictions on how funds are spent.

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Monthly interest payments keep the balance flat; capital repaid on death or care entry.

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No — the no-negative-equity guarantee means the estate can never owe more than the sale price.

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He treats it as a last resort — consider alternatives first, understand compound interest, get whole-of-market advice.

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