Yes, though you’ll have to use the funds released to repay your outstanding secured loans. Any money left over will be for you to spend as you wish.
With a lifetime mortgage, yes, you’re in control and may live in your home as long as you want to. With a home reversion plan, the reversion company will own all or part of the property, although you may live in it for the rest of your life.
Subject to the lender’s criteria, you may transfer your existing plan to a new property.
No. The providers I work with offer a “no-negative-equity guarantee”.
You’ll be responsible for having both the relevant insurance policies in place for your property and for maintaining the property.
Depending on the equity release product, you can either make monthly interest payments, ad hoc partial interest payments or no monthly payments at all. We’ll discuss this when deciding on the best plan for your needs.
Yes, you may pay the equity back early, although this might be subject to early repayment charges. We’ll explain these in full at our initial meeting, as there are different options associated with each equity release product.
No, the equity release funds are tax free and may be spent in any way you wish.
Yes, there are plans that allow you to leave a percentage of your property’s value to your beneficiaries. In addition, any funds remaining after the plan has been paid in full will be left to your estate automatically.
Whether you’re single or one of a couple, if you need care in your home, this isn’t likely to affect the terms of your plan. For couples, if one of you leaves to go into a care home, the other can continue to live in the property, and your plan is normally not affected. The plan will end if both of a couple or you as a single person have to move into a care home.
The property will be sold once the last surviving spouse of a couple or you as a single person have either moved into long-term care or have passed away. The sales proceeds are used to repay the equity, and any money left over forms part of your estate.
