Here we answer some of the most frequently asked questions that our advisers are asked about equity release.

Q: How old do I have to be to be eligible for an equity release scheme?
A: It varies from one provider to another, but you usually have to be aged 50 or over to apply for an equity release scheme.

Q: Is there a minimum amount I have to take?
A: Some equity release providers do stipulate a minimum amount and this is typically in the region of £15,000 to £25,000. But you may not have to take all of it in one go.

Q: What happens to my partner if I die?
A: If the equity release scheme was taken out in both your names, then it will simply continue. But if the property and the equity release plan were in your sole name then your partner would have to sell the property and find alternative accommodation.

Q: What happens if my partner or I need long-term care after we have taken out an equity release plan?
A: If care is provided in your own home or if only one of you needs to move into residential care, then the equity release scheme is normally unaffected. If you both have to move into a residential care home then your own home would normally be sold and the equity release scheme would end.

Q: What happens if my circumstances change?
A: If you are single when you take out an equity release scheme, but later want to share your home with a new spouse/partner then you may be able to transfer your equity release scheme into joint names. But there may be a charge for this and your spouse/partner would usually need to meet the minimum age requirements for the equity release scheme. If you are unable to change your existing equity release plan into joint names then that means your spouse/partner would have to move out in the event of you dying or going into residential care.

Q: Are equity release plans regulated by anyone?
A: Yes. Equity release schemes are regulated by the Financial Services Authority. In addition, most equity release providers are members of SHIP (Safe Home Income Plans) which is a voluntary organisation specialising in equity release which sets out a strict code of conduct with which its members are required to comply.

Q: Who is responsible for maintaining my home once I take out an equity release plan?
A: You will be responsible for keeping the property in a good state of repair. If you fail to do so, the equity release scheme provider has the right to arrange for any necessary repairs to be carried out and then pass the costs on to you.

Q: Are there any tax implications?
A: The lump sum or regular income that you receive from an equity release plan is not subject to tax.