What are the main features of Equity Release Plans?
The money that you release is tax-free and can be spent in almost any way you want, plus there are typically no repayments to make unless you wish to. With lifetime mortgages, the most popular type of equity release, you continue to own 100% of your home and the plans are ‘portable’ which means that you can still move home in the future if you wish.
All plans come with a no-negative equity guarantee, so you can never owe more than your home is worth, plus some plans include options to guarantee an inheritance for your beneficiaries.
Specialist equity release advice is essential in order to discuss the effect on the amount of inheritance you can leave, and if your entitlement to means-tested benefits could be affected now or in the future. Other important things to consider are whether there are any alternatives to equity release, such as downsizing, or if there could be early repayment charges should you wish to pay off an equity release plan early.
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