What is the home equity release scheme?

Most such schemes work on the basis that the lender will provide the homeowner a monthly income or a lump sum provided there is sufficient equity in the property and you continue to reside in the home. Upon the homeowner's death or if you sell your property to move into a nursing home, the loan company will recover its share or all of the property. Although not guaranteed, the Home Equity Release Loan Company will usually benefit provided you live to your expected life expectancy because of the rising housing market.



As with any home equity schemes, there are advantages, disadvantages and of course other alternatives to consider. The main disadvantages are that it is unlikely that your family will benefit from any inheritance, any partner would be forced to find alternative accommodation and there is the possibility of losing applicable means tested benefits.