FAQ's
What is equity release?
Your equity is calculated as the difference between your home’s value and any outstanding debts, such as a mortgage or loan secured against the house. Equity release allows homeowners aged 55 or over to access some of their home’s value, tax-free, to help their family, improve their home or supplement their pension.
What Equity Release schemes are available and can I be forced out of my home?
A home reversion plan means selling a stake in your home in return for a cash lump sum. By selling a share of your property, you will still own part of the property, but continue to enjoy the right to live in it for the rest of your life.
Can I move to a new house?
A home reversion plan means you sell all or part of your property in return for a tax-free sum, a regular income or even both. You will stay on your home; however, you will not pay rent, and you can stay in the property until you enter long term care or death.
Can I release equity if I have not paid my mortgage in full?
Am I eligible for equity release?
How much equity can I release in my house?
Do I have to pay tax on the money I release?
Is a good credit record essential?
It depends on the type of plan you choose. If you opt for a home reversion plan, you will not need to make monthly payments, so it is impossible to default, meaning your credit history is immaterial. The cash in your home you own, essentially makes the interest payment for you, therefore you cannot default.
Can my house be reposessed?
Evolve Lifetime is approved by the Equity Release Council (ERC), which provides a number of guarantees. One of which is Tenure for Life. This means that the property is not and never will be at risk of repossession, as there are no contractual repayments needed or expected during the borrower’s lifetime.
Will I end up owing more than the house is worth?
No, if the property is sold for less than the outstanding mortgage, the difference is written off. This is due to the protection provided by the Equity Release Council’s No Negative Equity Guarantee.
Will equity release impact how much inheritance my children receive?
What happens if I move into long term care?
Will my family end up in debt because of equity release?
Are there any disadvantages?
If you move out permanently to a care home or, in the event pf your death, your property will be sold to repay the provider first. The money left after the sale of the house and repayment to the provider will go to your estate to leave as an inheritance.