Mythbuster: "My home will be owned by somebody else"

Who will own my home?

A common misconception about equity release is that you will no longer own your own home. With a lifetime mortgage - the most popular type of equity release plan – you can rest assured that you will always remain the owner of your property.

Your property remains your own

A lifetime mortgage is a loan secured against your home. It doesn’t involve giving up home ownership - you can feel safe in the knowledge that your biggest asset will remain your own.

This means you’ll still have the freedom to decorate and carry out home improvements as you usually would, including adding extensions such as a conservatory (subject to the usual planning permissions and lender agreement). In fact, many of our customers take out equity release to pay for home improvements.

However, it does also mean you remain responsible for the upkeep of the property.

Spend your cash as you wish

When it comes to spending the tax-free cash you’ve unlocked from your home, it can be spent in a wide variety of ways. It could be for supporting someone close to you, taking a trip of a lifetime, paying off existing debts, or as already mentioned, some long-awaited or much-wanted home improvements. The choice is always yours.

Home reversion

Another type of equity release plan is a home reversion. This involves selling all or part of your property to a reversion company for less than market value. So, if home ownership is important to you, then make sure you discuss it with your Key Equity Release adviser.

Stay in your home for life

No matter which type of equity release plan you choose, as long as it’s one that meets the Equity Release Council standards, you’ll be guaranteed the right to stay in your home until the plan comes to an end. This is usually when you, or the last remaining applicant either passes away or enters long-term care.

All of our plans meet the Equity Release Council standards and come with the guarantee you can remain in your home. If you are considering equity release we recommend that you read through is it right for me?

Things to consider

• All our equity release advice relates to Key lifetime mortgages only - a loan secured against your home
• Equity release will reduce your estate’s value and may affect your entitlement to means-tested benefits
• A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future
• You should always think carefully before securing a loan against your home to repay existing debt
• The loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care
• £899 advice fee only payable on completion