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Home equity release describes the products that allow you to withdraw money (equity) that’s tied up in your home. You usually need to be over 55 to claim, but it’s a useful method of using your home as a collateral whilst also living in it.
You can claim the money as a lump sum or in instalments – but be aware that you will have to repay. And interest is added.
There are two kinds of equity release plans:
Thankfully, you don’t have to pay any tax on money you get from your equity release. That said, you should be aware that releasing equity from your house will reduce the value of your estate.
This can reduce your family’s liability for Inheritance Tax (IHT), but it can also mean that there is less of your estate to go to your family.
Before you go for equity release, bear in mind:
For more information and advice, take a look at this AgeUK factsheet.