For many homeowners, their property is their most valuable asset. As you get older, you may find yourself “asset-rich but cash-poor” — with wealth tied up in your home but limited liquid income. Equity release allows you to unlock some of that value without having to sell or move out.

It can provide a lump sum, regular income, or both, but it’s a major financial decision that requires careful thought and professional advice.

Equity release is a way of accessing the money (equity) tied up in your home if you are aged 55 or over. Instead of selling, you borrow against the property or sell part of it while retaining the right to live there for life.

There are two main types of equity release:

1. Lifetime Mortgage

   • The most popular form of equity release.

   • You borrow money secured against your home while retaining ownership.

   • Interest is usually “rolled up” (added to the loan) and repaid when you die or move into long-term care.

   • Some plans allow you to make voluntary interest repayments to reduce the final debt.

2. Home Reversion Plan

   • You sell part (or all) of your property to a reversion provider for less than its market value.

   • In exchange, you receive a lump sum or regular payments.

   • You retain the right to live in the property rent-free for life.

Eligibility requirements vary by lender, but generally you must:

• Be 55 or older (60–65 for some products).

• Own your home outright or have a small remaining mortgage.

• Live in the property as your main residence.

The amount you can release depends on your age, property value, and the scheme chosen.

Equity release can help in many situations, such as:

• Supplementing retirement income.

• Funding home improvements or adaptations.

• Helping children or grandchildren onto the property ladder (“living inheritance”).

• Paying off an existing mortgage or debts.

• Covering care costs while remaining in your own home.

Equity release can be life-changing, but it isn’t right for everyone. You should consider:

• Impact on inheritance – Releasing equity will reduce the value of your estate.

• Accruing interest – With lifetime mortgages, rolled-up interest can grow quickly over time.

• Early repayment charges – Some plans have high penalties if you repay early.

• Effect on benefits – Equity release may affect entitlement to means-tested benefits.

• Flexibility – Some modern plans offer drawdown facilities (taking money in stages) or repayment options.

Typical costs include:

• Arrangement fees (from the lender).

• Solicitor’s fees for independent legal advice.

• Valuation fees for your property.

• Advice fees (if using a specialist equity release adviser).

These are usually deducted from the lump sum or factored into the loan.

Equity release is regulated by the Financial Conduct Authority (FCA). Reputable products should also carry the Equity Release Council (ERC) guarantee, which ensures:

• You can remain in your home for life.

• You can never owe more than the property’s value (“no negative equity” guarantee).

• You have the right to move to another suitable property in future.

Before committing, it’s important to explore alternatives:

• Downsizing to a smaller property.

• Remortgaging with a standard loan.

• Using savings, pensions, or investments.

• Seeking family financial support.

Equity release should be considered only once these options have been reviewed.

1. Initial advice – Speak to a qualified equity release adviser about your goals and circumstances.

2. Property valuation – A professional valuation determines how much you can release.

3. Offer and legal work – Your solicitor reviews the offer and ensures you understand the terms.

4. Completion – Funds are released, and you continue living in your home.

The process typically takes 6–8 weeks from application to completion.

Will I lose ownership of my home?

With a lifetime mortgage, no — you remain the legal owner. With a home reversion plan, you sell part of your property but retain the right to live there for life.

How much can I release?

This depends on your age, property value, and lender criteria. Generally, the older you are, the more you can release.

Can I move home later?

Yes, most ERC-regulated plans allow you to transfer the agreement to a new suitable property.

What happens when I die?

The loan (and any interest) is repaid from the sale of your property. Any remaining value goes to your estate.

At Manak Solicitors, we provide expert legal advice on equity release to ensure you fully understand your options and obligations. Our team will:

• Review the terms of your chosen plan.

• Explain the impact on your property, finances, and inheritance.

• Ensure your rights are fully protected throughout the process.

Equity release is a significant decision. With our experience in property and private client law, we will guide you step by step to make sure it’s the right choice for you and your family.

Contact us today for clear, independent advice on equity release and your available options.