Will I Still Own My Home If I Release Equity?

One of the most common questions about equity release is:

“Will I still own my home if I take out equity release?”

The short answer is: yes, in most cases you do. Equity release schemes are designed to allow you to access the value in your home while continuing to live there. Let’s explore how it works.

What Is Equity Release?

Equity release is a way for homeowners aged 55 and over to unlock tax-free cash from the value of their property without needing to move. You can receive the money as a lump sum, smaller instalments, or a combination of both.

There are two main types of equity release:

1. Lifetime Mortgages

• You remain the legal owner of your home.
• You borrow against your property’s value.
• The loan, plus any interest, is repaid when you pass away or move into permanent care.

2. Home Reversion Plans

• You sell part (or all) of your property to a provider.
• You no longer own 100% of the home.
• You still have the right to live there rent-free for life.

How Does Equity Release Affect Home Ownership?

• Lifetime Mortgage: You keep full ownership. The provider simply places a charge against the property, similar to a traditional mortgage.
• Home Reversion: You give up a share of ownership, though you can continue living there for life.

If keeping full ownership is important to you, a lifetime mortgage is usually the preferred choice.

What About My Inheritance?

Equity release will reduce the amount of inheritance you can leave behind, but that doesn’t mean you can’t pass anything on. Many plans allow you to protect a percentage of your property’s value for loved ones.

Plus, if you choose a plan approved by the Equity Release Council, you’ll benefit from a no negative equity guarantee — ensuring you’ll never owe more than the value of your home.

Final Thoughts

Equity release can be a valuable financial tool in later life, giving you flexibility and freedom to enjoy retirement. Whether it’s funding home improvements, topping up retirement income, or helping children get on the property ladder, it can make a big difference.

But before making a decision, it’s important to speak to a qualified equity release adviser who can guide you through the options and ensure it’s right for your circumstances.

To see how much you can release visit www.equityreleaseadvisors.co.uk

Frequently Asked Questions About Equity Release

1. Can I sell my house if I have equity release?

Yes. You can sell your home, but you’ll need to repay the equity release loan from the sale proceeds. Some providers also allow you to move your plan to a new property, subject to criteria.

2. Can I pay off equity release early?

Some plans allow voluntary repayments, but early repayment charges may apply. Always check the terms of your agreement.

3. What is the minimum age for equity release?

You need to be at least 55 years old to take out a lifetime mortgage and usually at least 60–65 years old for a home reversion plan.

4. Is equity release safe?

Equity release is regulated by the Financial Conduct Authority (FCA). If you choose a plan from a provider who is a member of the Equity Release Council, you’ll also benefit from extra safeguards such as the no negative equity guarantee.