There are a lot of people that like the idea of releasing equity in their home. It is something which can bring in some much needed income. However, it is something which is not an option for everyone.
It is something that is designed for people who have paid off their mortgage. So you need to completely own the house that you live in, to be able to use the scheme. You will also need to have a house worth more than £80,000 in many cases, although there may be some exceptions. You will be able to get a lump sum, which will be paid back when you no longer need the house and will be able to continue living in it, as long as you need to. Once the house is sold then the bank will take what is owing to them and possibly also the increased value of the property too. It all depends on the agreement that you have with them.
There are different types of equity release and so this may effect whether you are eligible for it. Some are like mortgages and you may need to still be working or have a good income to be able to use them. Others do not require this.
It is worth remembering that you need to apply to a bank for these and you may not be accepted. The financial institution will need to guarantee that your house sells after you die or go in to a care home because they will want to get their money back. They will therefore only take on a property that they see as a good investment. However, there are a lot of companies offering this sort of finance and so if one turns you down, then it is worth approaching another one.
Therefore, you are not guaranteed the chance to release equity in your home and do not assume that you can. You will need to have paid off the mortgage and have a property that is attractive to a lender. You may also need to have good financial prospects yourself, depending on what type of scheme you want. The less money that you want to borrow, the easier it is likely to be to find a financial company that will be willing to lend you the money and be able to help you out.