- The equity in your home is reduced meaning the asset value is reduced to your estate i.e., less inheritance (which can also be an advantage – see below).
- Compound Interest (where no voluntary payments are made) can entirely extinguish the remaining equity in your property.
- Any means tested benefits may be affected. You should discuss this with your financial adviser prior to proceeding with an equity release.
- Some restrictions on moving home.
- Ongoing obligation to keep your Lender informed of certain events e.g., if you want to adapt your home, long trips away from home, if you wish to move someone into your home etc.
Selling a Property with an Equity Release Mortgage: A Practical Guide
Selling a Property with an Equity Release Mortgage: A Practical Guide There are several reasons why you may want to sell a property which has an equity release mortgage, whether this is because you wish to move house or because you have inherited a property that needs...