Frequently Asked Questions

Frequently asked questions about Lifetime and Equity Release

How much does the service cost?

We provide our advice for free. This means you and your loved ones can make a decision about whether equity release is right for you without incurring any costs.

If you decide to proceed, there may be an upfront charge to value your property, however, the vast mojority of plans offer free valuations.

You will need to use a solicitor, the costs for this can vary from firm to firm but is typically anywhere from £900 – £1,200. If you choose a firm from our panel, you will usually only pay legal fees if your case completes, if you arrange your own solicitor you are likely to incur legal costs even if your case does not complete.
Lifetime Equity Release charge a fixed Arrangement Fee of £1,495 which is only paid if your plan completes. 

Is equity release safe?

Equity release is regulated by the Financial Conduct Authority (FCA) whose primary role is to protect customers and enhance the financial market’s integrity. The FCA sets rules and guidance for all financial services firms ensuring they treat customer fairly and ensure all communication, including advice and recommendations, are clear, fair and not misleading to consumers. 

Am I at risk of losing my home?

All lifetime mortgages give you a guaranteed right to remain in your home until you and anyone else on the property deeds (e.g., your spouse if you have one) have passed away or moved out to go into long term care. You can therefore be confident that you will remain the legal owner of your home for as long as you need it as your primary residence. 

What if I want to move?

Plans are portable so do not prevent you from moving home and transferring the plan if the new property meets the criteria of the provider. Some plans offer other features such as Downsizing Protection which can allow an opportunity to repay the plan in full without a penalty should you move. Many plans also have a Bereavement Guarantee feature that allows you to repay the plan in full without penalty if a joint owner passes away.

I already have a mortgage. Do I qualify?

Yes, however, any mortgage debt must be repaid. The money you release from the property can be used to help repay the existing mortgage. Any remaining funds can be used towards other objectives you may have. 

Can I still leave an inheritance for my dependents?

Yes, there are plans available that protect some of your equity by adding an Inheritance Guarantee. This protects a percentage of the value of your home for your loved ones. If your home increases or decreases in value in the future, the value of the guaranteed percentage will also increase or decrease accordingly. 

How much can I release?

These include the age of the youngest applicant, (you or your partner if you have one), the type of property you live in, your property value, and your health. Our free online calculator can give you an idea of the money you can unlock or speak to us to get an exact amount based on your circumstances. 

Will I leave debt to my loved ones?

No. All lifetime mortgages offer a No Negative Equity Guarantee, which means that at the end of the plan if your property is worth less than the amount owed, you or your estate will only pay back what your home can be sold for.  

When and how do I repay?

The plan will end when the last survivor (e.g., your spouse if you have someone who is a joint owner) leaves the property permanently. You can repay the plan early, however, there may be an early repayment charge, there are plans with Defined Early Repayment Charges, which means there will be no penalties after a set date so you can plan when to repay. Some plans let you make Voluntary Overpayments so you can pay the interest if you wish, or even reduce what you owe each year if your finances allow it. Your advisor will be able to give you guidance on which type of plan may suit you best.

Do I have to make payments?

With most plans, there are no monthly repayments required, however, there are plans that can have either fixed or flexible payment options included. With flexible payment options, the lender will allow you to start and stop payments when it suits you. 

What does the process involve?

One of our qualified Advisors will have an initial Discovery Call with you to get an understanding of your circumstances and needs, this usually takes 45-60 minutes depending on how many questions you have. From there, we will research the market for you, sifting through over 800 plans to find the a suitable option. If we do not think equity release is the right option for you, this is usually the point where we’ll advise you to consider something else. 

If we do recommend a plan, we will explain how it works and give you a summary of the key points. If you like our solution, we will prepare a detailed report explaining everything you need to know that you can share with your family. This completes our Advice Process which is free of charge. 

If you want to proceed, we will submit an application with the Provider on your behalf and manage the case to completion. Once you receive your funds, we charge a fixed Arrangement Fee of £1,495. If your case does not complete for any reason, you will not pay us a penny. 

Are you members of the Equity Release Council?

The Equity Release Council represents the equity release sector and exists to promote high standards of conduct and practice in the provision of and advice on equity release which have consumer safeguards at its heart. Lifetime Equity Release are members of the Equity Release Council (ERC) and adhere to their standards. 

Request A Callback

Get great advice, straight from the heart. Request a call back for a free, no obligation and friendly consultation.

DD slash MM slash YYYY