You can spend the money you unlock from your home on whatever you like. Common reasons for taking out equity release include the desire to maintain a certain lifestyle into retirement and to finance one-off events. Additionally, some people simply do not want to move out of their home and away from family and friends but need additional finance to be able to stay there. However, equity release is not suitable for meeting short-term borrowing requirements and you should consider the implications of committing yourself to this type of product. Your financial adviser will be able to help you consider all your options.

 Moving home to a smaller property or to a different area can generate a lump sum. Also, being retired does not stop you being able to borrow against your property via a standard loan or mortgage. If you need to make home repairs or improvements contact your local council as you may be able to claim money to pay for these. To fidn out more click here.

Yes. There will be a minimum and maximum limit, but this will vary according to the provider and the type of scheme. Other factors such as your age and the value of your home will also determine the amount of money you can release. At Just Retirement our maximum limit is £250,000 and minimum advance is £10,000.

If you take out an equity release plan you will reduce the value of your estate, so this may reduce any Inheritance Tax liability you have. However, you should not use this type of scheme for tax purposes without first seeking professional advice.

If you opt for a home reversion the title in your home transfers to the company that provides the reversion and you are required to give up the deeds, if your property increases in value you will only benefit from the increase on the proportion that you still hold.

With a lifetime mortgage, on the other hand, you continue to own your home and benefit from any increases in its value.

So long as the new home you wish to move to meets the acceptance criteria of your provider then you should be free to move. In some circumstances, such as if you were to down-size to a smaller property, a part repayment of the equity released may be required.

If the plan is in both your names then it will continue until the death of the last surviving person. However, if your property and plan are taken out in your name only, the property would have to be sold and your partner would have to find somewhere else to live (unless, for example, they were able to repay a lifetime mortgage in full.)

If the amount required to repay your mortgage ends up being more than the eventual value of your property upon sale, most equity release providers cover the loss and they have absolutely no claim upon any other assets in your estate. This is called a ‘no negative equity guarantee’ and is offered by all SHIP (Safe Home Income Plans) members.

Equity release schemes are designed to be paid back only when you die or move permanently into care. If the scheme is repaid prematurely there could be a substantial early repayment charge. Different lenders calculate these charges differently. The amount concerned will be detailed in the provider’s plan documentation.

If you are thinking of equity release, then deal with an organisation that is a member of the trade body ‘Safe Home Income Plans’ (SHIP). Just Retirement is a member of SHIP and undertakes to abide by its code of practice. This is designed to protect customers and, in addition to the ‘no negative equity guarantee,’ they promise to provide a clear presentation of their plans. Once you have decided on the plan which most suits your needs, SHIP members usually require your solicitor to sign a certificate confirming that the plan has been clearly explained to you. For more information, please visit http://www.ship-ltd.org.

Yes you will need to appoint a solicitor to oversee the transaction, help you protect your interests and make sure you understand the commitment and the details of what you will be signing up to.

Equity release schemes can be complex and may not be suitable for everyone who considers them, so it is always advisable to speak to an IFA, who will be able to shop around and get the right product for you. You should also be well informed about the different types of equity release schemes on offer. We have produced a number of consumer guides which you can download from this website, and other organisations such as the Financial Services Authority (FSA) also produce independently written information sheets and guides. To view the FSA’s Moneymadeclear website, click here. However, the most comprehensive way of finding out about equity release and about the best options for you is to consult an IFA qualified to advise in this area.

There are two main forms of equity release scheme – lifetime mortgages and home reversions. The most important difference between the two is that with a lifetime mortgage you still own your own home and with a reversion mortgage you sell a percentage share of your home to a reversion company in return for a lump sum or a lifetime income. Just Retirement does not offer home reversions.

The fixed repayment mortgage gives you a cash lump sum and you agree at outset with the lender that you will pay back a higher fixed charge when your home is sold - either when you die or move permanently into care. The figure will depend on your age and life expectancy.

The roll-up mortgage is a loan from which you can get a regular income or a cash lump sum. Interest is charged on the initial loan and on all the interest that is added but you do not have to make any repayments until the home is sold – either when you die or move permanently into care. Because of this the amount you owe can grow quickly.

Just Retirement is a specialist in providing innovative financial products for those coming up to and in retirement and our products are particularly notable for their flexibility. For example we allow you to draw down small amounts rather than take a single cash payment. In our experience many people who decide to use equity release are unsure how much they will need to unlock. Some companies only offer the opportunity to release money once, which means you may take out too much or too little. At Just Retirement we will let you know the total amount of money you can release and leave you to decide what cash advances you require and when, allowing you to make withdrawals when it suits you. You only pay interest on what you take.

Yes. In addition to the roll-up and fixed repayment mortgages there is the interest-only mortgage, where you get a cash lump sum by way of a loan and pay the interest due on the loan each month at a fixed or variable rate. The initial amount is repaid when your home is sold. There is also the home income plan which pays out a cash lump sum which is used to buy an annuity to give you a regular income, usually fixed for life. Click here to find out more.

A reversion company buys part or all of your home and you will normally be paid less than the full market value. You can get the money as a cash lump sum or income. The amount released will be less than the value of your property and you also usually get a lease giving you the right to carry on living in your home for the rest of your life. Always check the terms of the lease to make sure you understand them. The minimum age for these types of schemes is usually higher than for lifetime mortgages.

Just Retirement Solutions offers a full financial advice from a panel of leading equity release providers. To contact them, click here. If you would prefer to find and Independent Financial Adviser who is qualified to advise on equity release, IFA Promotion will be able to put you in touch with suitable IFAs in your area. You can contact them on Tel: 0800 085 3250. Alternatively, use the ‘Find an IFA’ search on its website – www.unbiased.co.uk