Why Your Equity Release Might Be a Smart Move If You’re 55+

by Kim Burne.

Cashing out from the home you currently live in without any monthly repayments can raise a lot of people’s skepticism antenna and that’s fair but is not as bad as you probably think. In fact, it might be a lifesaver depending on where you are in life and how you go about it


How Equity Release Works

If you’re 55+, equity release is a way you can get cash out of your home without having to make monthly repayments as the money you receive is only repayable from the sale of your home when you pass or move into long term care, after which the money you took out is paid back and the rest is passed down to your heirs.


The amount you can release will depend on the amount of equity you have in your home and your age. You can get a free estimate here in 3 minutes

Why Release Equity? – The Benefits

There are a number of reasons why you might consider releasing equity – the obvious one being the access it gives to cash or lump sums without having to deal with those monthly payments. Other valid reasons for wanting an equity release is if you want to:


  • Pay off mortgages and loans
  • Enjoy refreshing and peaceful holidays
  • Help your family
  • Earn tax-free money
  • Create income in retirement


How Much Money Can I Get?

Equity release plans allow you to release anywhere from £10k all the way to £500k. But, the amount of money you can expect to release, depends on your age, the value of your house, and the amount of equity you currently hold in it. In 2018, homeowners released an average of over £90,000 in their homes.


So, how much can you get? Every case is different. Use our free ER calculator to find out.


"I released £305,000 from my home which my wife and I are now enjoying as part of a very comfortable retirement. We were amazed that it was completely tax free." - Steven Gateley

"When my husband and I use the free online calculator, the result claimed we could access £180,000 from our home. We went ahead and we actually received £190,000. We were both extremely pleased with this" - Kate Savage

What About My Partner?

If you are living with your significant other or someone else, you can make the plan in joint names, and they can continue living in the home even after you die.


Also, if someone should ever move in with you after you have taken out the equity, all you need to do is inform your ER provider about it and they can easily switch it to a joint plan to accommodate the new person.


A good provider can even approve you to move to a new, more suitable home if you ever need to. Find the right provider for you here


Click on your area below to see how much equity you could release

Important Things To Look Out For

Releasing equity in your home isn’t as easy as releasing equity in a juicer – you need to be careful and watch out for a couple of things when making your decision.


Before taking a plan, make sure it comes with a ‘negative equity guarantee’ (NEG) so that if you ever end up owing more than what your house is worth, your ER provider will take the loss, not you – that way, you won’t be passing on any debt burden to your inheritors. It can also reduce the amount of inheritance tax your heirs pay.


Another thing to look out for when choosing a provider, is there accreditation with the “Equity Release Council” (ERC). ERC is the governing body responsible for ensuring safe equity releases.

Using an ERC-accredited provider, guarantees that you retain ownership of your home after you take out the money.


Here’s how to find ERC-certified providers that offer negative equity guarantee


What Next? – Choosing the Right Provider

There are a ton of equity release providers out there offering different interest rates and plans – Who will give you the best deal? – follow the steps below to see the best deals market:


Step 1: Click the button below and got to the next page

Step 2: Select your age bracket

Step 3: Enter your home’s value and you will get a list of the best deals available.


Click the button below to see how much tax-free cash you qualify for and the best provider to get it from