Older couple hiking in the wild.

Equity Release

Unlock cash from your home and enjoy a more comfortable retirement

Try our free Equity Release calculator

Please note that the information given on these pages should not be seen as advice to take out this product. 

Types of equity release

Equity release is taken through lifetime mortgages. We know your home is important to you, that’s why our lifetime mortgage products are clear and straightforward

Lifetime Mortgage Lump Sum

If you need to release equity for a specific one off expense such as home improvements or to pay university fees, it may be better to borrow a one off lump sum.

Lifetime Mortgage Drawdown

Rather than just receiving a one-off lump sum, a drawdown lifetime mortgage gives you the option to release your cash over time, as and when you need it.

Understanding equity release

Equity Release isn’t for everyone, so it’s important to understand what equity release can offer you, as well as factors you should consider

Advantages of Equity Release

Equity release offers retirees a range of options, as well as allowing them to remain in their own home.

  • Get a tax-free cash lump sum.
  • With a lifetime mortgage, the tax-free cash can be taken as either a lump-sum or you can 'draw down' the money as income depending on the option you choose.
  • You still own 100% of your home with a lifetime mortgage.
  • If you pay off your current mortgage with the lump sum, you can choose to spend the leftover cash in a variety of ways.
  • The Equity Release Council’s no negative equity guarantee means that, where applicable, you’ll never owe more than the value of your home when it is sold.
  • You may be able to move home after taking equity release.
  • You can chose how you want to repay your lifetime mortgage, whether after you pass or in monthly payments similar to a traditional mortgage.
  • Under the Equity Release Council standard, a variable interest rate must have an upper cap for the entirety of the loan.

How do you apply for Equity Release?

Equity release isn’t like a mortgage you may have got when you first purchased your house. We’ll go through the equity release process, so you know what could happen if you take your interest further.

 

Person with speech bubble and a stack of coins

Seek financial advice

If you’re looking into equity release, then it’s always wise to seek financial advice first, as it may not be the best way to fund your retirement. 

A financial adviser will also be able to give you regulated, unbiased advice on the best product on the market for you and your finances. 

 

Adviser talking to their client

Appoint a solicitor

Like when you buy a house, you’ll need to appoint a solicitor to act on your behalf in the process of applying for a lifetime mortgage. 

They will go through the process of working with your chosen lender, from organising valuation and assisting you through the administration process. 

 

Receive the funds

If your application is successful, and all parties are satisfied, the lender will release the funds to your solicitor who will provide you with the money as agreed, whether as one lump sum or a series of payments. 

 

Enjoy your retirement

Once you’ve got the funds, you can make the most of your retirement, whether that’s spending time with loved ones, going on your dream holiday, or learning a new skill. It’s up to you!

 


Things to consider

  • The money you release from your home could affect any means-tested benefits you’re entitled to now or in the future.
  • The money you release is paid back after you die, from your estate. This means the size of your estate, and the amount you can pass on to your loved ones, could go down.
  • The money you release from your home is a loan, and interest will be repaid when you die or if you move into long-term care.
  • You have to take advice to release equity from your home. Initial advice is free, and there is no obligation. If you decide to go ahead and your case completes, our advice fee of £1,795 would be payable. Other lender and solicitor fees may apply.
  • If you're looking to find some extra money in retirement, equity release isn't the only option. There are lots of alternatives like downsizing your home or taking out a personal loan.
  • Equity release requires paying off any existing mortgage.
  • If you choose a lifetime mortgage with a drawdown option, the interest rate paid on any drawdowns is done at the point of the drawdown, rather than when you took out the lifetime mortgage. This can mean you could pay more interest, depending on economic circumstances. 
  • Taking equity release is likely to affect the amount of inheritance your beneficiaries will receive. It’s important to discuss these decisions with them, as they may have a preference. 
  • Most lifetime mortgages require you to be at least 55, although some may require you to be over 60. The earlier you start, the less effective equity release can be, as amount of money to pay off when your mortgage ends will be greater. 
  • Some lifetime mortgage providers may let you repay some or all of your interest before the end of your mortgage term, whereas others may not let you pay any. If there is a repayment option during your mortgage term, you will need to undergo an affordability test to ensure that you can meet required payments.

Equity Release Advice

To help you access money from the value of your home, we provide an equity release advice service. Everything we do at LV= is focused on giving you honest advice and finding you a suitable equity release plan from the whole of the market with the fastest, friendliest service.

We believe that everyone should have access to independent, regulated financial advice. It should not be seen as a luxury for the few who can afford it or who are experienced in using it. Why? Because it provides financial and emotional benefits. Good advice ensures better financial outcomes and frees people from the worry of making complex decisions that could have long-term implications.

Important information about Equity Release

Here’s the need to know info, so you have the full picture

  • Releasing cash from your home will reduce the value of your estate and may affect your entitlement to state benefits.
  • You are not required to make repayments, therefore the loan plus interest can grow very quickly.
  • These are lifetime mortgages. To understand the features and risks ask for a personalised illustration.
  • Equity release may involve a home reversion plan or lifetime mortgage which is secured against your property and may reduce the value of your estate and impact funding long-term care.

Please note, at LV= we don’t offer a home reversion plan option.

Choosing the most suitable product will depend on a number of considerations, including:

  • How much equity needs to be released and in what form.
  • The value of the property.
  • The age of the homeowner.
  • How much, if any, the homeowner wants to leave as an inheritance.

Financial Advice on equity release

Need help?

We’re here to help, have a commitment-free chat with one of our friendly advisers today.

Lines open: 9am to 5pm Monday to Friday

TextDirect: First dial 18001

We will record and / or monitor calls for training and audit purposes.

FAQs on Equity Release

We know you probably have lots of questions about equity release. Here’s some of the most common questions we get asked:

A plant, laptop and a cup of coffee

Do I still own my home with equity release?

With a lifetime mortgage you will still own your home, however with a home reversion plan you will only own the percentage of the home you haven’t sold. It’s for this reason that home reversion plans are less popular. 

Does equity release come with fees?

There are often fees associated with equity release, from advice fees to product fees. This will vary from provider to provider, but your adviser will be able to provide exact fees for the products you are considering.