Equity release is a way for homeowners aged 55 and over to access the value locked up in their home, without needing to move. The money you release is tax-free and can be used for anything you choose, such as boosting your retirement income, helping family, or repaying debt.

The most common type of equity release is a Lifetime Mortgage. You borrow a lump sum (or take smaller amounts over time) secured against your home. You retain full ownership of your property. Interest is usually added to the loan, which is repaid when your home is sold — typically when you pass away or move into long-term care. There are no monthly repayments unless you choose to make them.

Equity release may be suitable for homeowners aged 55 and over who want to access tax-free cash but remain in their property. It may be helpful if you’re looking to supplement retirement income, clear debts, or financially support loved ones. It’s not right for everyone, so professional advice is essential.

To be eligible, you must:

• Be aged 55 or older

• Own a property in the UK (usually worth at least £70,000)

• Release a minimum amount (often £10,000 or more)
  The amount you can release depends on your age, health, and property value.

Advantages:

• Tax-free cash to use as you wish

• Remain in your home for life

• No monthly repayments required

• Can help with retirement planning or gifting

Disadvantages:

• Reduces the value of your estate

• May affect entitlement to means-tested benefits

• Interest can compound quickly if unpaid

• Early repayment charges may apply

Yes, it can. Taking a lump sum or regular payments from equity release may affect your entitlement to means-tested benefits such as Pension Credit or Council Tax Support. As part of our advice, we’ll assess this with you carefully before any decision is made.

Choose a provider approved by the Equity Release Council to ensure consumer protections like:

• A “no negative equity guarantee”

• The right to remain in your home for life

• Clear and fair terms
  Always take independent financial advice before proceeding. At Patrick Wayne Wealth Management, I’ll ensure you understand all options, risks, and protections available.

1. Lifetime Mortgage (most common):

• You borrow against your home’s value

• No repayments required unless you choose

• You retain ownership

2. Home Reversion Plan:

• You sell a part or all of your home to a provider

• You live there rent-free

• You no longer fully own the home

Lifetime Mortgages are far more common and flexible, but I’ll explain both so you can make an informed decision.

To be eligible for equity release, you must:

• Be aged 55 or over

• Own your home in the UK (typically worth £70,000 or more)

• Want to release at least £10,000 (depending on the provider)

• Either own the property outright or have a small existing mortgage (which would be paid off using the funds)

The amount you can release will depend on your age, the value of your property, and your health.