Is equity release a good idea for you?

Posted 11th July 2024

Curious about unlocking the wealth tied up in your home? Wilson Browne solicitors can guide you through the complexities of equity release. Learn about the benefits, drawbacks and important regulations to see if this option is right for your future.

Eager to unlock wealth that’s built up in your property, but unsure whether it’s a good idea for you and your family? With equity release, it’s essential you have a clear understanding of the potential benefits and pitfalls of your chosen scheme.

Fortunately, equity-release schemes have high levels of safeguarding in place and must follow a strict code of conduct in order to protect consumer interests.

These strict regulations are set out by the Financial Conduct Authority (FCA) with the oversight of the Equity Release Council (ERC) and must be followed by all equity release scheme providers and advisors.

Like any loan arrangement, there’s likely to be both pros and cons, and equity release is no exception.

While the exact advantages and disadvantages will vary depending upon the type of equity release scheme you choose and your individual circumstances, our experts can give you an idea of what to expect.

Receive money to spend as you please
With the money you release from your home, you could make some much-needed home improvements, go on a holiday, pave the way for a more comfortable retirement, or financially support a child or grandchild through education.

This lump sum is tax-free
As equity release is a type of loan, it’s not taxable. This means it’s free of income tax and the money will only be taxable if you invest the money, for example, by putting it in a savings account.

Retain ownership of your home
In many cases, individuals that decide to release equity are keen to remain in their current home either for a significant period of time or until they pass away. With equity release, you don’t have to worry about the time, money, and stress of selling your beloved home to generate more money.

Your estate will be worth less
Equity release will affect how much your estate is worth as you’re essentially borrowing money from your estate. This loan, as well as any interest, must be paid off when you die, often through the sale of the property.

Could be more expensive in the long run
In some cases, equity release can be more expensive over time than simply downsizing to a more affordable property. Lifetime mortgages, for example, tend to have much higher interest rates than standard mortgage arrangements.

Early repayment charges (ERCs) may apply
Like most loans, equity release schemes are often subject to ERCs if you want to pay back the loan early. This can make equity release schemes more costly for those that are eager to repay the borrowed money.

Ultimately, equity release can be a viable option for many eligible individuals, but the answer to this question will largely depend on your specific circumstances. It’s therefore vital that you seek expert financial and legal advice before committing to your desired equity release scheme.

Offering fixed and transparent fees, direct access to your legal team, and expert advice regarding a wide variety of equity release schemes and lenders, Wilson Browne Solicitors can help you to transform your equity into money with ease. Give us a call we can arrange your free initial consultation at your closest Wilson Browne Solicitors branch – we have offices in Leicester, Northampton, Corby, Kettering, Wellingborough and Higham Ferrers and Rushden.

For simplified advice and clear guidance on equity release, contact our team at 0800 088 6004. Visit or scan the code to complete our online contact form.