What Is Equity Release

Equity Release is unlocking the value built up in your home as a tax free lump sum or income while continuing to live in your home. There are two main ways to release equity in the UK.

  1. Lifetime Mortgage
  2. Home Reversion

Lifetime Mortgage is the most popular form of equity release in the UK. You can release funds from your property and it will be a loan secured on your property with no commitment to make payments, but with most plans you have the option to do so.

Home Reversion is when you sell all or part of your house to a lender, and they give you a lump sum. With reversions you lose the ownership of your home or a part depending on what proportion is sold to the lender , however you have the right to live in your property until you pass away or go into long term care.