Equity Release FAQs
If you are researching equity release, it is completely normal to have questions. This page covers some of the things people ask us most often — from eligibility and ownership, to inheritance, risks and repayments.
Jump to FAQsEquity release is designed for homeowners aged 55 or over.
This is the product most people mean when they talk about equity release today.
Advice is regulated, and plans recommended through the process should meet strict standards.
Independent advice from Need Financial Planning for clients across Thanet and beyond.
Independent advice
Advice is based on suitability and the wider market, not a restricted sales approach.
Regulated and safeguarded
Modern equity release advice is FCA regulated, with strong protections built into the process.
Mainly about lifetime mortgages
Most modern enquiries centre on lifetime mortgages rather than older-style home reversion plans.
A clearer way to think about equity release
When people talk about equity release today, they are usually referring to a lifetime mortgage. This lets you borrow against your home while still retaining ownership of it, with the loan usually repaid when you pass away or move into long-term care.
There is another type called a home reversion plan, where part or all of the property is sold in exchange for a cash lump sum or regular payments. These are far less common, but they are part of why equity release has historically had a poor reputation in some circles.
Lifetime Mortgage
The most common modern form of equity release. You keep ownership of your home, and the lender secures a loan against the property instead.
Home Reversion
Much less common. This involves selling part or all of your property to a provider, which is very different from the type of plan most people consider today.
Equity Release FAQs
These are some of the questions we hear most often. If your situation is more specific, that is exactly what a consultation is for.
What is equity release and how does it work?
Equity release allows homeowners aged 55+ to access some of the value in their home without having to sell or move. The most common type is a lifetime mortgage, where you borrow against your home and the loan is repaid when you pass away or move into long-term care.
Who is eligible for equity release?
You must be aged 55 or over and own your home, usually worth at least £70,000. The property must be your main residence and in reasonable condition. Any existing mortgage is typically repaid as part of the process.
How much money could I release?
The amount depends on your age, property value and, in some cases, your health. Most lenders allow between 20% and 55% of your home’s value to be released. Your adviser can calculate this more accurately during your free consultation.
Will I still own my home?
Yes — with a lifetime mortgage, which is the most popular type of equity release, you retain full ownership of your home. The lender places a charge against the property, similar to a standard mortgage. Only home reversion plans involve selling a share of your property.
Can I move house after taking out equity release?
Yes, as long as your new property meets the lender’s criteria. Most plans from Equity Release Council members include a portability feature, which means the plan can usually be moved to a new home.
Will my family inherit less?
Equity release will reduce the value of your estate, but many plans offer an optional inheritance protection feature so you can safeguard a percentage of your home’s future value for beneficiaries.
What are the risks of equity release?
The main risks include a reduced inheritance, interest roll-up increasing the amount owed over time, a potential impact on means-tested benefits, and possible early repayment charges. However, plans approved by the Equity Release Council include a no negative equity guarantee, which means you will never owe more than your home’s value.
At Need Financial Planning, we are completely transparent about these risks. Our advice is independent, and we will only ever recommend equity release if it is genuinely suitable for you. We will also discuss other available options so you can make a fully informed decision with confidence.
What are the costs involved?
Typical costs can include advice fees, a property valuation, legal fees and lender arrangement charges. These should always be discussed clearly before you decide to proceed. There should be no hidden costs in a properly explained advice process.
Can I repay my equity release early?
Yes — some plans allow voluntary or partial repayments without penalty, while others may charge an early repayment fee. Your adviser should explain the flexibility and any restrictions so you understand how the plan may work if your circumstances change.
Still not sure if equity release is right for you?
That is exactly where advice can help. A conversation can give you clarity on what equity release means in practice, whether it suits your plans, and what alternatives may be worth considering before you make any big decisions.
Back to Equity Release HubWhat is Equity Release?
Equity release allows homeowners aged 55 and over to unlock some of the value tied up in their property without having to sell or move. The funds released are tax-free and can be taken as a lump sum or in smaller payments, depending on your needs.
Lifetime Mortgage
The most popular type of equity release, a lifetime mortgage allows you to borrow against your home’s value while keeping ownership. The loan and interest are usually repaid when you pass away or move into long-term care. Some plans let you make voluntary interest payments to reduce the total owed.
Home Reversion Plan
With a home reversion plan, you sell part or all of your home to a provider in exchange for a tax-free lump sum or regular income while remaining there rent-free for life. When the plan ends, the provider receives its share of the proceeds from the sale of your property.
How the Equity Release Process Works
The process is simple and designed to make you feel confident from start to finish. Here’s how it unfolds:
Initial Advice & Application
Your adviser explains your options, checks eligibility, and completes your application when you're ready to move forward.
Valuation & Offer
A professional surveyor values your home, and the lender issues your formal offer with all the plan details clearly explained.
Legal Work
Your solicitor completes all legal checks and paperwork, ensuring your plan meets Equity Release Council standards.
Offer Review & Acceptance
Once you’re happy, your solicitor and adviser confirm acceptance and prepare for completion.
Funds Released
Once all checks are complete, your funds are released—usually within a few working days—ready to use however you wish.
Typical completion time: 6–8 weeks from your first appointment.
Ready to Start Your Equity Release Journey?
Speak to a qualified local adviser today, or explore your options with our free calculator — no obligation, no pressure.
James Brown DipFA CeMAP CeRER
Equity Release Adviser
Based in Broadstairs, James is a qualified Equity Release Adviser who specialises in Lifetime Mortgages. He’s helped countless clients across Thanet and Kent understand their options and make informed, pressure-free decisions. His approach is straightforward, empathetic, and focused entirely on what’s best for you.
Book Free Consultation →Equity Release FAQs
What is equity release and how does it work?
Equity release allows homeowners aged 55+ to access some of the value in their home without having to sell or move. The most common type is a lifetime mortgage, where you borrow against your home and the loan is repaid when you pass away or move into long-term care.
Who is eligible for equity release?
You must be aged 55 or over and own your home (usually worth at least £70,000). The property must be your main residence and in reasonable condition. Any existing mortgage is typically repaid as part of the process.
How much money could I release?
The amount depends on your age, property value, and health. Most lenders allow between 20% and 55% of your home's value to be released. Your adviser can calculate this accurately for you during your free consultation.
Will I still own my home?
Yes — with a lifetime mortgage (the most popular type), you retain full ownership of your home. The lender places a charge against the property, similar to a standard mortgage. Only home reversion plans involve selling a share of your property.
Can I move house after taking out equity release?
Yes, as long as your new property meets the lender’s criteria. Most plans from Equity Release Council members come with a “portability” feature that lets you move your plan to a new home.
Will my family inherit less?
Equity release will reduce the value of your estate, but many plans offer an optional inheritance protection feature so you can safeguard a percentage of your home's future value for beneficiaries.
What are the risks of equity release?
The main risks include a reduced inheritance, interest roll-up increasing the amount owed over time, potential impact on means-tested benefits, and possible early repayment charges. However, all plans approved by the Equity Release Council include a no negative equity guarantee, which means you’ll never owe more than your home’s value.
At Need Financial Planning, we’re completely transparent about these risks. Our advice is independent, and we’ll only ever recommend equity release if it’s genuinely suitable for you. We’ll also discuss all other available options so you can make a fully informed choice with confidence.
What are the costs involved?
Typical costs include advice fees, a property valuation, legal fees, and lender arrangement charges. These are always discussed upfront before you decide to proceed. There are no hidden costs or penalties for getting advice.
Can I repay my equity release early?
Yes — some plans allow voluntary or partial repayments without penalty. Others may charge an early repayment fee. Your adviser will explain all options so you can stay flexible if your circumstances change.
Your Free 2025 Equity Release Guide
Learn everything you need to know about equity release in one clear, friendly guide. Our 2025 edition explains your options, risks, and the safeguards in place.
Download Your Free Guide →
THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME.
YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBT SECURED ON IT.
IMPORTANT: With investments, your capital is at risk. Pensions and investments can go down in value as well as up, so you could get back less than you invest.
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