Frequently asked questions
In this section you will find some of the most common questions people want to know about equity release.
If you have a specific question then please call one of our equity release experts on 01872 859 414.
Equity release allows homeowners aged 55-85 to release equity in their home into tax-free cash, without the need to sell or downsize.
This depends on the type of equity release product you opt for. The most common type of equity release is a ‘Lifetime Mortgage’, and this product allows you to retain 100% ownership of your home. If you opt for a ‘Home Reversion Plan’, you essentially sell your home to the lender, lose ownership of this, and are then considered a ‘tenant’. Here at giraffe, we almost always recommend a ‘Lifetime Mortgage’ instead of a ‘Home Reversion Plan’, as we understand that our clients home should be theirs to own. However, there are some situations where a ‘Home Reversion Plan’ may be more suitable, and that is where we will be able to use our expert knowledge to inform you.
This depends on the type of equity release product you opt for. The most common type of equity release is a ‘Lifetime Mortgage’, and this product allows you to retain 100% ownership of your home. If you opt for a ‘Home Reversion Plan’, you essentially sell your home to the lender, lose ownership of this, and are then considered a ‘tenant’.
If you want to move home you can potentially ‘port’ the plan to your new property or repay the loan using the proceeds of the sale. This depends on the terms and conditions of the recommended product, all of which will be fully explained by one of our expert advisers.
There are two main products – Lifetime Mortgage or Home Reversion Plan. A lifetime mortgage is where you retain ownership of the property. The loan is repaid at the end of the term, together with any interest that has rolled up if you decide not to service the interest payments. A home reversion plan is where the lender buys 100% of your home and rents it back to you for a nominal fee e.g. £1 per month. However, you lose ownership of the property and have zero equity left.
There are two main ways to take your money – either as a lump-sum or as a drawdown. A lump-sum product means you take a payment of equity in one go. A drawdown policy allows you to take up to a set amount as and when you need it the most.
The main providers in the market, which is growing due to consumer demand, are: Just Retirement, Aviva, Legal and General, Retirement Advantage, More 2 Life, Pure Retirement, Hodge Lifetime and Liverpool Victoria.
The giraffe founders have been in the financial services industry for over 15 years and have advised clients, including high-net worth individuals, on many areas in the financial spectrum. All of our giraffe advisers hold the Certificate in Equity Release, while the company is a member of the Equity Release Council and regulated by the Financial Conduct Authority.
That’s the beauty of equity release. The money is yours to do whatever you want with it. It could be for a holiday, a new car, to help your family or to enjoy your life. The choice is yours.
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