Do I still own my house if I take out Equity Release?

Yes, you do – your house absolutely still belongs to you if you take out an Equity Release Lifetime Mortgage. If you want to sell and downsize in the future, move to another, smaller house or move in with someone else that’s entirely up to you, the decision is yours.

You must, of course, repay the loan if you sell, any surplus funds are then yours. Some clients move house and continue to have a Lifetime Mortgage. Generally, a Lifetime Mortgage is portable, meaning they can move with you if you buy another, smaller home. There are some restrictions that most lenders have when considering this, but provided your new property meets the lender’s criteria, you can, in effect, move the mortgage to your new property.

If I have taken Equity Release, what about when I die… What happens then?

Your property when you’re alive belongs to you, in effect when you die it still does, except that when you pass away your property goes into your estate the same as it would if you had no Lifetime Mortgage at all. Your executors; sometimes a solicitor, sometimes a relative, decide what to do with your property. Occasionally one of your children may choose to buy it; they then would repay the Lifetime Mortgage (which is now due) from savings or alternatively obtain a mortgage. If your family members decide not to purchase your property, then the property is sold in the usual way. The Equity Release lender is paid back from the proceeds of the sale. Any surplus funds go into your estate and are distributed to your beneficiaries.

The Regulatory Position, for your protection is clear:

Equity Release plans are regulated by the Financial Conduct Authority. You can rest assured that equity release is one of the most highly regulated products in the UK and that these regulations are there for your safety and protection. They exist to allow you to gain access to the wealth stored up in your property, safely in the knowledge that your adviser will be working towards the most suitable solution to your individual financial circumstances, while considering every alternative.

The advice process from Equity Release Scotland is clear, concise, open and transparent ensuring clients can make a fully informed choice in the comfort of their own home.

Equity release providers now offer a very attractive suite of products which means each consumer can feel confident in gaining the financial freedom to achieve their lifelong objectives, which may include , clearing an existing mortgage, provide some early inheritance to a loved one to get on the property ladder, improving their home, buying a new car or topping-up income to help with everyday living. The list is endless.