The lump sums released through an Equity Release Scheme are released tax-free. However, there might be tax implications depending what you do with the money once you have it. If it is placed on deposit for instance, or put in an annuity, then tax may then become payable but only on any interest, income or gains you receive.

If you are not spending the money straight away then taking professional tax advice is recommended.

This can vary between a very quick four weeks for a very straightforward application up to several months for applications that encounter complications. If the Equity Release is being used to purchase a property, then how long it takes will depend on all the usual issues around buying a property, including whether a chain is involved or not.

Using Equity Release to buy a property will not usually slow down the process, the process of buying a property is just usually longer. An experienced Equity Release adviser will be familiar with the common problems that can cause delays, such as matters concerning Land Registry, especially if it involves leases. You should never make any commitment concerning the funds you are expecting until you actually have the money in your account.

There are no rules about whether or not you should make a will or update it when you take an Equity Release. However, it is always a good idea to regularly update your will so it reflects your current wishes and circumstances.

Many people without a will take the opportunity to make a will for the first time when taking an Equity Release as they would have been thinking about their plans for the future as part of the process. It is also a good idea, if there isn’t already one in place, to arrange a Lasting Power of Attorney (LPA) so that someone you trust can manage your affairs should you become physically or mentally incapacitated.

Equity Release plans all have the facility for you to move your plan to a new property. However, any new property will have to be acceptable to your existing provider. There must also be sufficient equity available in the new property to support the current outstanding balance of the loan, otherwise a degree of repayment might be required.

If you are thinking of moving, it is always a good idea to discuss your plans with a qualified adviser or your existing provider first.

How to move house with an Equity Release Plan

Yes, you can take an Equity Release on these types of property, the lending criteria will be different to that of your main home though, and there will be slightly different terms and conditions.

Yes they can. If someone moves in permanently with you then they will be asked to complete a form to say that they will vacate the property when the property is sold.

Yes you can. You will have to redeem that mortgage, usually using the money released from the Equity Release plan, as the rules state that the Equity Release plan can be the only charge on your property. Many people use Equity Release for the purpose of clearing existing mortgages, especially those that are interest only or have a term that goes into retirement.

It will depend on your age, the value of your property and the type of property you have. Equity Release plans are available to people age 55 and over. If the property is jointly owned, then the youngest has to be 55 or older. Each provider will have slightly different criteria so using an experienced, qualified adviser who can look at all the available products on the market will give you the best chance of finding a plan that meets your needs.

You will need a solicitor to handle the paperwork and give advice on the legal aspects of the plan. A solicitor will carry out the conveyancing required, repay any existing mortgages and make sure you understand the plan before you sign the contract.

Equity Release is a specialist product and there are a number of solicitors who are dedicated to dealing just with Equity Release. While you are free to use any solicitor of your choice, one of these specialist firms is likely to make the process smoother than one who only occasionally deals with the product.

It is your money and you can use it however you wish. Some of the more common uses include repaying an existing mortgage, making improvements to your hove, helping family members get on the housing ladder and fulfilling wishlists like going on holidays or buying a new car.

What can an Equity Release be used for?

Yes, an Equity Release Lifetime Mortgage can pay off an existing mortgage subject the borrower and the property meeting the lender’s criteria.

The big advantage would be no longer having to meet contractual monthly repayments and freeing up some income to use elsewhere. It isn’t the best idea in every case, but talking it through properly with a qualified and independent adviser will help you find out whether it is a good option for you

There’s no correct answer to this question. Each provider is different, with different features and benefits. If you only take advice from one company, you will never know whether it is the best one for you.

Likewise, if you speak to advisers that can only use provider’s from a set panel, you will not get the widest choice possible. Only by talking with an independent, experienced and qualified adviser will you stand the best chance of finding the most suitable company for you.

Yes it can, but there might be penalties for doing so. You should always talk your options over with an independent, experienced and qualified adviser before trying to repay an Equity Release plan back early.

In most cases the answer is yes. Certainly the newer plans are designed to allow people to move and take the plan with them, subject to the new property being acceptable to the lender.

Always take advice from an independent, experienced and qualified adviser before going too far down the path of moving to a new home.