Equity release is a way of taking out cash from the value of your home, if you’re aged 55 or over, without having to move. It’s a long-term loan that’s eventually repaid using your home once you pass away, or if you need to go into long-term care. Until then, you’ll remain a homeowner and won’t need to move out. You can receive either a one-off lump sum payment or a lump sum, with a cash reserve to draw from in the future. The loan is secured against your property and you retain ownership. You can protect a portion of the property for inheritance purposes Interest is charged and added to the balance, which is cleared when you (or the second applicant if the loan is in joint names) either pass away or move into long term care. The property is then sold to clear the outstanding balance. You can have the option to clear some interest either monthly or at your choosing, to decrease the amount owed at the end. Anything left is then passed to your beneficiaries. You can either take a lump sum or a drawdown facility, depending on how much you need and when and this can reduce the build-up of interest. The older you are, the more money you can take out. Read our Frequently Asked Questions