To be eligible for equity release, someone will normally need to be at least 55 years of age and to own their home. Their property will also need to be worth a minimum amount – which varies between providers. It will be considered to be worth its open market value minus any mortgage or other outstanding debt secured against it.

Equity release schemes are not suitable for everyone and our advisers will let customers know if it is more appropriate for them to consider other options. Moving home to a smaller property or to a different area can generate a lump sum. Also, being retired does not stop someone from being able to borrow against their property via a standard loan or mortgage. If they need to make home repairs or improvements they should contact their local council as, if they are retired, they may be able to claim money to pay for these. Click here for more information.

No. Its advisers will only ever recommend Just Retirement’s products if they are the most suited to the particular circumstances of the individual concerned. Although the two organisations are sister companies they operate independently.

Means-tested benefits may be affected but entitlements to State benefits, together with any impacts, can be clearly identified during the advisory process, and will be discussed and taken into account.

Your initial lump sum\the income provided by the scheme, together with any further advances, will not incur Capital Gains and Income Tax. However, should you put the money into a deposit account you may be taxed on the interest you receive from it.

Equity release schemes will reduce the value of an overall estate for Inheritance Tax purposes if some or all of the money is spent. This can enable a plan holder to benefit from the equity in their property without losing it in tax on their death. However, there are also other ways of reducing Inheritance Tax liabilities which could be more appropriate in certain circumstances. This is why we suggest you seek independent financial advice.

The risks will depend upon the type of equity release plan chosen. For example, a roll-up interest loan will continue to increase until the property is sold but, to avoid owing more money that your home is worth, we only deal with providers who are members of SHIP (Safe Home Income Plans). This means that they are bound by a code that guarantees that the repayment amount will never exceed the sale proceeds of their property. A reversion plan actually involves selling an agreed percentage of the home to the lender, so there is a risk of the plan holder’s estate failing to benefit from any future rise in house prices on this percentage. A Just Retirement Solutions adviser will explain all the associated risks.

Those taking out equity release will need to make sure that they have appropriate buildings and contents insurance. They are also likely to be responsible for maintenance and repairs unless the scheme provider has a plan involving a repair and maintenance section.

Just Retirement Solutions only ever recommends plans provided by SHIP members, who guarantee that the plan holder - or their surviving partner in the case of joint schemes – will be able to live in their home until they die or permanently enter long-term care. This is based on abiding by the terms and conditions set by the provider.

Just Retirement Solutions, because it only deals with SHIP members, only recommends equity release schemes that allow the plan holder to move house – provided that that the new home still meets the provider’s acceptance criteria.

On the plan holder’s death (or the death of their surviving partner in the case of joint schemes) the property will be sold. With a lifetime mortgage, the proceeds of the sale will be used to pay off the original loan plus any accumulated interest. Any remaining funds will form part of the dead person’s estate. In the case of a reversion plan, the property will belong at least in part to the reversion company, and the estate will receive the sale proceeds relevant to the proportion – if any – still owned by the plan holder.