The following are some of the most popular questions we get asked.
How do I know if I am eligible for an equity release plan?
To be eligible for equity release from Just Retirement Solutions' current panel of providers, you will need to be 60 years of age and to own your own home. Your property needs to be worth at least £70,000 (although this varies between product providers) and will need to be in the UK.
What are the alternatives to equity release?
Equity release plans are not suitable for everyone and our advisers will let you know if it is more appropriate for you to consider other options. Moving home to a smaller property or to a different area can generate funds for you. You may also be able to borrow against your home using a standard loan or mortgage. For other potential alternatives, please call our team for a no-obligation meeting, on 0800 015 0993, Monday to Friday, 9am to 6pm. Read more about the alternatives to equity release here.
Is Just Retirement Solutions Limited biased towards Just Retirement Limited products?
No. Our advisers will only ever recommend Just Retirement’s products if they are the most suited to your individual circumstances. Although Just Retirement is our sister company, we are completely independent. We have access to a panel of leading providers' products and if equity release is right for you, we will recommend a suitable product.
Will equity release affect my entitlement to state benefits?
The short answer is possibly. During our advice process we conduct a full state benefit review to ascertain which benefits you are entitled to and how any means-tested benefits would be affected by equity release. If you have any concerns, or want more information immediately, please check your entitlement with your Benefits Agency, the Citizens Advice Bureau or your Local Authority.
What is the tax position with regards to equity release?
Any monies you release from your home either as an initial amount, together with any further advances will not incur any capital gains tax or income tax. However, if you put the money into a bank or building society account or other investment product that provides a return on your money, you will be taxed on the gains that you make on that investment.
What about inheritance tax?
Equity release plans reduce the value of your overall estate for inheritance tax purposes if you spend some or all of the money you release. There are also other ways of reducing inheritance tax liabilities which could be more appropriate in certain circumstances. Just Retirement Solutions is not a tax specialist and cannot advise you in this area. However if you do wish to speak to a tax expert, you could go to Unbiased.co.uk where you can use their ‘Find an accountant’ services to find a local tax expert.
What are the risks in taking out an equity release plan?
To an extent the risks to you will depend on the type of equity release plan you choose. All our advisers will explain the risks and benefits of the plans available to you in detail and you can request a personalised illustration which will outline these for you in full.
Read about the advantages and disadvantages of a lifetime mortgage here.
Read about the benefits and risks of a home reversion plan here.
What about insurance and property maintenance?
When taking out equity release you will need to make sure that you have appropriate buildings and contents insurance. You will also be responsible for maintenance and repairs.
Could I ever be forced out of my home?
Just Retirement Solutions Limited only ever recommends plans provided by Safe Home Income Plan (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.
Can I move house?
Just Retirement Solutions only recommends equity release schemes that allow you to move house. This is because we only deal with Safe Home Income Plan (SHIP) members and we follow their code of conduct. However, your new home must still meet the provider’s acceptance criteria.
What happens when I die?
On the death of the last surviving policy holder 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 your estate. If there are sufficient funds in the estate to repay the loan, the home does not have to be sold.
In the case of a home reversion plan, the property will belong at least in part to the reversion company, and your estate will receive the sale proceeds relevant to the proportion – if any – you still own.