Things to consider with Equity Release

Purpose

What do you want the money for and how much do you actually need?
Are there other, more suitable ways of raising capital or producing income, such as downsizing to a smaller property?

Family

Whilst no one has a right to inherit your estate, there is often an expectation and some of your family might have made their plans based on that expectation.

A condition of most equity release schemes is that your home is sold when you die. So if you use your property for home equity release you will not be able to leave it to your family.

Are you living with a younger partner, relative or friend? Depending on the terms of the scheme, they will need to find alternative housing in the event of your death.

Does the scheme allow you to move house if you need to? One day you might want to move into sheltered housing or need residential care, or move to be nearer to your family.

Effect on benefits

If you receive cash from a home equity release scheme this may cancel out your eligibility for means-tested benefits or help with paying for care. If money is really tight you may be better off finding out whether you qualify for means-tested benefits or other benefits such as Attendance Allowance or Council Tax Benefit. If you need the cash for repairs or adapting your property you might be able to get help from your council.