Frequently Asked Questions

What will it cost to set up the plan?

We will never charge you for your initial enquiry or consultation, so it will never cost you to find out if equity release is right for you. A fee is only ever payable on completion of a suitable scheme. This fee is typically £795. In addition, there may be a provider’s arrangement fee. You will also be liable for the cost of valuing your property and your own legal fees. In some cases, you may also have to pay the provider’s legal costs. The provider will also require you to maintain buildings insurance on your property for the duration of the plan.

Can I move home?

All SHIP members will allow you the freedom to move to a suitable alternative property. You must, of course, inform the provider before doing so. At the time of the move, you may repay the loan and interest in full, or alternatively, you maybe eligible to transfer the plan to your new property if it meets the provider’s criteria at the time. You should check with the provider for any restrictions before moving as penalties may apply.

Will I be responsible for maintaining the property?

Yes, you will be responsible for maintaining the property in at least as good a condition as it was when the plan was taken out.

What happens on my death?

With a lifetime mortgage, on your death (or on second death for joint plans) the loan and interest are due to be repaid. This would normally be done by the administrators of your estate selling the property and repaying the loan and interest from the proceeds.

With a Home Reversion Scheme, the property is sold and the corresponding percentage of the sale price is made available to the beneficiaries of your estate.

Can I end the plan early?

If your situation changes, you may wish to repay your lifetime mortgage plan early. You should however, remember that these plans are intended to be long term plans and therefore, the provider may charge an early repayment fee. You cannot cancel a home reversion scheme once it has started.

Will this affect my pension?

Taking out an Equity Release Plan won’t affect your State Pension or any personal pensions.

What about State benefits?

Equity Release may affect means tested benefits. Our advisers will make you aware if this is the case. We would however suggest that you take expert advice before entering into an Equity Release Scheme.

What about tax?

Under current legislation, any cash sum drawn will not attract Income Tax or Capital Gains Tax

Would a provider consider an impaired life?

Some Equity Release plans are specifically designed for people who are in poor health. Please contact the Intermediary Team on 0845 120 1040 for more information or to discuss a particular case in more detail.

Why should I tell my family?

By using your property to improve your retirement, you will reduce the value of your estate on your death. We therefore strongly recommend that, unless there are exceptional circumstances, you discuss your intentions with your family before taking this big decision.

Should I take legal advice?

Yes, you should appoint your own independent solicitor who will act on your behalf throughout and ensure that you fully understand the process at every step. We can refer you to a specialist independent solicitor if you wish.

Could I lose my home?

All SHIP members have a no negative equity guarantee and, providing you do not break the terms of the agreement, a no repossession guarantee.