Frequently Asked Questions

Frequently Asked Questions

Equity release can appear complex if you are unfamiliar with the process, product and services involved, but at Equity Release Works, we’ve kept our entire process simple and jargon-free.

Below is a list of the questions we are most frequently asked. If you have any questions which are not answered below, please call us on 0800 368 8214 and we’ll be happy to help.

How much does my house need to be worth?

In order to qualify for equity release, ordinarily your home must be worth at least £70,000.

Is equity release safe?

1.) Equity release is regulated by the Financial Conduct Authority (FCA) whose primary role is to protect customers and enhance the financial market’s integrity.

2.) All the lenders on our panel are members of the Equity release council which has statements of principles including :

(i) You will never be in negative equity

(ii) You can remain in your home for as long as you wish

(iii) You can move home whenever you want

Equity Release Works is authorised and regulated by the Financial Conduct Authority as a trading style of Pension Works. We are equity release advisers also members of the Equity Release Council and adhere to council standard.

What types of equity release plans are there?

There are two types of equity release plans:

– Lifetime mortgages which we provide from lenders such as Aviva, Canada Life, LV and Legal & General, you can choose to make payments or not, whichever you prefer.

– Home reversion plans which we don’t provide as this involves selling All or part of your home.

Will I still own my home?

Yes, if you purchase a lifetime mortgage, you’ll still own your home and can stay in it for as long as you like.

Can I suffer from negative equity?

No. We only use equity release products that are endorsed by the Equity Release Council and qualify for their no negative equity guarantee.

Can I move home?

Of course. With Equity Release Council approved plans, your plan can be transferred to a new home, subject to criteria. It’s just like a regular mortgage you have been used to.

Do you handle the legal side of the process?

The choice is yours. We can appoint a legal representative for you, that will deal with all the necessary details. If you already have a relationship with a solicitor, then we are more than happy to work with them.

What are the set-up costs if I proceed with a plan?

I) Free valuations are available on most schemes

II) Solicitors fees-you are free to engage your own solicitor of course, if you use our recommended firm their fees are £575 plus vat & disbursements, they’ll come & visit you at home to give you the requisite legal advice.

III) Lenders arrangement fees, these are normally free as the market is very competitive, however, sometimes a better rate is available with a lender fee which can vary between zero & £950 pound. We will, of course, offer you all options.

IV) Our own broker fee is a fixed fee of £995 payable only upon completion & can be added to your loan, this offers a saving of at least £500 against many of our competitors who charge a percentage of your borrowing which can be very expensive.

Are there any restrictions on what I can do with the money released?

No, you can use the cash lump sum for anything you like – but think carefully about how much you need to borrow as this could affect the legacy you leave to your family.

Can I still leave an inheritance for my family?

Yes, you can. Some equity release plans guarantee a set percentage of your home’s value, at the time your plan ends and will be retained and passed-on.

Can I do equity release if I still have a mortgage?

Yes, you can. But if you take out a plan, your existing mortgage will need to be repaid as part of the transaction. You may of course be able to borrow surplus funds for other uses.

Do I have to pass any credit or affordability checks?

Equity release schemes are secured against your home and are not dependent upon repayment ability. This means that good credit history is not essential, nor the ability to pay back the mortgage. Nevertheless, some schemes available may be restricted if you have an adverse credit record. Always make your advisor aware of any credit issues.

What happens when I pass away?

If you live on your own, then the property will be put up for sale and any monies recovered will be used to pay off the mortgage and the remainder left to your beneficiaries. If you live with a surviving partner, then your partner can continue to live in the property, but the equity release plan will continue until the second death. Once they pass away, the property is sold.

Any sale proceeds will be used to pay off the debt and again the remainder left to nominated beneficiaries.

How is my home's value assessed?

An independent RICS registered surveyor assesses the value of your property so you can be confident of an unbiased opinion of your property’s worth.

Will I have to pay tax on the money I release?

Any lump sum or income you receive through equity release is tax-free, being a release of capital from your home.If you are gifting monies from the proceeds of equity release to family members, this can have implications on your estate planning and their income tax.

Switching Equity Release Provider

Ready to get started?

Equity Release Works will guide you through the process of unlocking equity from your home, or switching your current equity release plan.

Simply call our friendly team today on 0800 368 8214 to get started.

0800 368 8214