Frequently Asked Questions

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Equity release allows homeowners aged 55 or over to access some of the money tied up in the value of their home, without necessarily having to sell or move.

The two main types are lifetime mortgages and home reversion plans. A lifetime mortgage is the most common form and allows you to borrow against the value of your property. Depending on the plan, you may be able to take a lump sum, regular payments, or a combination of both.

Equity release is a long-term financial commitment. It can reduce the value of your estate, affect your entitlement to means-tested benefits and, depending on the type of plan and how it is structured, may affect the amount available for your family or other beneficiaries.

It is important to consider all the available options before deciding whether equity release is right for you. Specialist advice should be taken before entering into an equity release plan. Please see our brochure for more information  or get in touch. 

Yes, in some circumstances equity release can be used to help fund care costs, either for care in your own home or to provide additional funds towards the cost of care.

However, equity release is a long-term financial commitment and may not be the most suitable option for everyone. Before considering it, it is important to look at other sources of funding, including any support available from your local authority, savings and other assets, and whether an immediate needs annuity or another solution could be appropriate.

Releasing equity can also affect your entitlement to means-tested benefits or local authority support, reduce the value of your estate and increase the amount owed against your property, particularly where interest is added to a lifetime mortgage.

If you are considering equity release to help meet care costs, specialist advice should be obtained. Your individual circumstances, care needs, financial position and the needs of any partner or family members should all be taken into account before a recommendation is made. Please see our brochure for more information. 

Equity release can reduce the amount that you are able to leave to your family or other beneficiaries. 

With a lifetime mortgage, for example, the amount borrowed, together with any interest and applicable charges, is normally repaid from the sale of the property when you die or move into long-term care. This can reduce the equity remaining in your home.

The impact will depend on how much you release, whether you make repayments, the interest rate and how long the plan remains in place. Some equity release plans also offer features that can help protect part of your property's value for inheritance, although these may affect the amount you can release.

Equity release can also affect your wider estate and your future financial options, so it is important to consider your plans for your family, potential care costs and any Inheritance Tax implications before proceeding.

Equity release is a long-term financial commitment. Specialist advice should be obtained to establish whether it is suitable for your individual circumstances and objectives. Please see our brochure for more information.

Not necessarily. If you move into permanent residential care, the value of your home may be taken into account when your local authority assesses how your care will be funded. However, this does not automatically mean that you have to sell your home.

In certain circumstances, the value of your property may be disregarded, for example where your partner or certain other qualifying relatives continue to live in the property.

There may also be other ways of funding care, depending on your circumstances, including an immediate care annuity or, where appropriate, releasing equity from your home.

Care funding can be complex, so it is important to understand the options available before making a decision. Specialist financial advice can help you consider how best to meet care costs while taking account of your wider financial circumstances and your wishes for your estate. Please get in touch to discuss your options

An immediate care annuity is a type of insurance policy designed to provide a regular income to help meet the cost of care. In return for a lump-sum payment, the annuity provider pays an agreed income, usually for the rest of the person's life.

The income can be paid directly to a registered care provider and, where the relevant conditions are met, may be paid free of Income Tax.

An immediate care annuity can provide greater certainty over meeting care costs and can help protect other savings and assets. However, it involves committing a lump sum to the policy and the income may not cover all future care costs.

Whether an immediate care annuity is suitable will depend on individual circumstances, including health, care needs, the level and expected duration of care costs, available assets and the individual's objectives. Specialist advice should be obtained before making a decision. Please get in touch to discuss.

IHT rules are complex and subject to change. If you are concerned about the potential IHT liability on your estate, professional advice should be obtained based on your individual circumstances. lease  

icsiin tou r IHT rules are complex and subject to change. If you are concerned about the potential IHT liability on your estate, professional advice should be obtained based on your individual circumstances. Please    o

The standard Inheritance Tax (IHT) threshold, known as the Nil Rate Band, is currently £325,000 per person. This is the amount of an estate that can generally be passed on without an IHT charge, subject to any applicable exemptions and reliefs.

There is also a Residence Nil Rate Band (RNRB) of up to £175,000 where a qualifying residential property is passed to direct descendants. This can potentially increase the amount that can be passed on free from IHT to £500,000 for an individual.

For married couples and civil partners, unused allowances can generally be transferred to the surviving spouse or civil partner. Where all the relevant conditions are met, this can potentially allow a qualifying couple to pass on up to £1 million without an IHT charge.

The RNRB is subject to eligibility requirements and is reduced for estates worth more than £2 million. Other exemptions and reliefs may also be available.

   rules are complex and subject to change. If you are concerned about the potential IHT liability on your estate, professional advice should be obtained based on your individual circumstances. Please get in touch to discuss your options. 

Consolidating several pensions into one plan can make your retirement savings easier to manage and may provide access to a wider range of investment and retirement options. However, consolidation is not automatically the right choice.

Before transferring a pension, it is important to understand the benefits, charges, investment options and features of each existing plan. Some pensions may include valuable benefits or guarantees that could be lost on transfer, such as guaranteed annuity rates, safeguarded benefits or other valuable contractual features.

Your circumstances, retirement objectives, attitude to investment risk and capacity for loss should also be considered. In some cases, keeping pensions separate may be more appropriate.

There is no 'one size fits all' answer. A review of your existing pension arrangements can help establish whether consolidation is appropriate and whether any benefits would be lost by transferring. Please get in touch to discuss your options.