Who sells the property upon my death?

If you took out an interest only mortgages or cash release schemes then -

• Your representatives must arrange the sale of the property and pay the loan and interest back to the lender. Any balance left over is for the beneficiaries of the will
  
  
• As interest is due until as the debt is repaid, it is important to obtain the best possible price for the property as quickly as possible
  
  
• Specialist lenders do, however, hold the right to sell the property should it remain unsold after a prescribed period of time
  
  
• This period varies between providers and can be from 6 - 18 months. Your estate will be responsible for all selling costs

If you took out a Home Reversion plan then -

• If you sell 100% of the ownership to a company, the provider will arrange the sale of the property upon your death
  
  
• If you sell less than 100% of your property when taking out the Home Reversion scheme the finance company will still arrange the sale. Any balance left over is for the beneficiaries of the will
  
  
• Regarding sale costs, some finance companies will split the costs with your heirs in the same percentage proportion as when the Home Reversion plan was taken out. Others though will charge all the fees

Will I have to pay for upkeep and maintenance on the property?

Yes, you'll need to keep the property in a good state of repair, and if you don't the loan provider can in certain circumstances carry out the repairs himself and add the cost to the total loan. Having a messy garden is one thing but if the house starts to fall down then that is very much a cause for concern for the lender.

What if I want to move home?

Most home equity plans can be transferred with the agreement of the lender. For example if you lived in a terraced house in north London and wanted to move to a similar house in south London then this shouldn't be much of a problem.

If you want to move to a lower priced property then usually you'll have to pay back part of the equity release scheme to the lender. Obviously any repayment costs will come from the sale of your present property.

What if I still have a mortgage on my home?

Most Equity Release providers will still accept your business as long as it’s a reality small mortgage, perhaps less than 25% of the total value of the property.

Can I cancel a home equity release scheme?

You can normally pay off a lifetime mortgage at any time but there will probably be expensive early repayment charges. Important questions like this should always be asked before you take out an Equity Release plan to know all the potential costs and liabilities.

However if you take out a home reversion scheme then this cannot be cancelled.

What would happen if I'm either single and get married or my spouse dies and I remarry?

If you were to marry or remarry then it would be advisable for the spouse to join the scheme as a joint member. This would mean in the event of your death they would be allowed to stay in the property until their death.

Some scheme providers allow you to do this but it does depend on how old your new spouse is. If he/she was under 60 years old then you may find it hard if not impossible to transfer your scheme into joint names.