Equity release has always drawn mixed reactions with many believing that equity release amounts to tying a financial noose around your neck. However, this is not the case – particularly in the last several years as equity release becomes more and more flexible. Here we de-bunk the top 4 myths:
Myth 1. You will have nothing to leave as inheritance
This is probably the most common myth, however there are plans available where you can protect your equity. Although in some cases this means that you reduce the amount to have available to release, it ensures that you release the money you require now, whilst your beneficiaries still receive an inheritance.
Myth 2. You will lose your home
All plans that we recommend are approved by the Safe Home Income Plans (SHIP) standards board. This means that you are not at risk of losing your home and you have the right to remain in your property for as long as you wish to.
Myth 3. You must stay in the same house for the rest of your life
Equity release plans are portable from one property to another, so this means that subject to the lenders usual terms and conditions, you can move to another property during the term of the plan.
Myth 4. You will leave debt to your family and loved ones
You will never owe more than the value of your home. This is guaranteed under all SHIP plans.