Equity Release

Am I eligible for Equity Release?

Each type of Equity Release plan has different eligibility criteria, so you must always check the details with the provider. There are however, some general rules:

  • The youngest applicant must be over the age of 55 (for some plans this is as high as 60 or 65)
  • Your property must have a minimum value of £70,000 (some providers may require a higher minimum)
  • Your property must be in England, Scotland, Wales or Northern Ireland (excluding the Channel Islands and Isle of Man)
  • If your property is leasehold, the minimum unexpired term varies from provider to provider, but at least 75 years is required. It may however, be possible to extend your lease
  • If your property is ex-local authority, you must, in most cases, be outside the discount period
  • You must be able to raise enough money to repay any existing mortgage or secured loans

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guide to Equity Release

Some types of homes are not suitable security for Equity Release plans, including mobile homes, park homes, houseboats, and properties with agricultural or forestry ties. Also, it is more difficult to arrange Equity Release plans on freehold flats (except in Scotland), properties with commercial or business use, or properties over or adjacent to commercial properties.

Is Equity Release the right choice for me?

Equity Release isn’t the right choice for everybody and that’s why we’ve created an impartial guide; so you can read all the information and make an informed decision. Take your time, discuss the options with your friends and family and, before you decide anything, make sure that:

  • You understand how it works
  • You understand the risks involved, not just the benefits
  • You have considered all the alternatives
  • You have spoken to an authorised and specialist adviser at the Equity Release Information Centre

Why should I seek advice from the Equity Release Information Centre?

It’s really important that you do this, as there is such a wide range of providers and plans available that, without professional guidance, you could miss out on thousands of extra pounds by choosing the wrong one. Also, at a time in your life when you may be financially vulnerable, you need to be confident that your home and the Equity Release plan are both secure.

There are other important factors to consider too, for example the financial welfare of your family or entitlements to state benefits.

What else should I think about when considering Equity release?

Always consider the impact that Equity Release might have on your entitlement to means-tested state benefits. ERIC’s advisers are trained to help you with this.

  • If you have close family, make sure you discuss the recommendations with them. Your decision may affect their inheritance or indeed the support they give you now.
  • Make sure that you feel comfortable with the safeguards being offered with an Equity Release plan. We have described the safeguards that come with a recommendation from the Equity Release Information Centre under How Am I Protected.

For a free no obligation consultation, call 0800 077 6885 or email info@equityreleaseinfocentre.co.uk