Equity Release FAQ's

Who is eligible for an Equity release scheme?

The usual prerequisites to take out an equity release contract are -

• Aged at least 55, and
   
• Own your property outright and/or have a small mortgage on it.
  

With the current property price drop, What happens if the property falls into negative equity?

This used to be a problem in the past but now all Equity Release schemes that are offered by members of SHIP have a no negative-equity guarantee.

A SHIP plan means that you can never owe more than the value of your home, whatever happens to the stockmarket, economy or housing market. Ultimately with a SHIP plan your home can never be taken away from you.

Could I lose my home?

Not if your plan is a SHIP backed scheme. However if not a SHIP backed then the answer in certain situations is yes.

This is why it's so important to get Expert advice when thinking about taking out an equity release plan.

What are my alternatives to a home equity scheme?

• Consider trading down, selling you home for example, £200,000 and buy a smaller one for £130,000. The balance difference being around £70,000 can be invested to provide an income
   
• Alternatively, members of your family may be prepared to lend you money by against the value of your property.
  

Who pays for the upkeep and maintenance of the property?

That is your responsibility and you will need to keep the property in a good state of repair, if you don't the loan provider can in certain circumstances carry out the repairs themselves and add the cost to the outstanding loan.