FAQs

1. What is SHIP?

SHIP stands for Safe Home Income Plans. SHIP is an organisation dedicated entirely to the protection of planholders and promotion of safe home income and equity release plans. Members of this organisation subscribe to a Code of Conduct and their plans guarantee that you cannot lose your home whatever happens to the stock market or interest rates. SHIP members also offer a “no negative equity guarantee”. This means that you will never owe more than the value of your property. SHIP also provides a formal procedure for handling complaints. Information is available on-line at: www.ship-ltd.org.

2. Can I alter or extend my property?

Most providers will allow this, however, you will need their written consent before starting any alterations

3. Can I move home?

All SHIP members will allow you to move home whenever you wish. You must, of course, inform the provider before doing so. At the time of the move, you may repay the loan and interest in full, or alternatively, you may be eligible to transfer the plan to your new property if it meets the provider's criteria at the time.

4. What if my new home is a different value?

If you move to a property of lower value than the property on which the plan was taken, you may have to repay a proportion of the loan and interest. If your new home is of substantially lower value, you may be required to end the plan and repay the loan and interest in full.

However, if you move to a house of greater value in the UK, you may have the option of releasing a further capital sum for your home.

5. Will I be responsible for maintaining the property?

Yes, you will be responsible for maintaining the property in at least as good a condition as it was when the plan was taken out.

6. What happens on my death?

With a lifetime mortgage, on your death (or on second death for joint plans) the loan and interest are due to be repaid. This would normally be done by the administrators of your estate selling the property and repaying the loan and interest from the proceeds.

With a home reversion scheme, the property is sold and the corresponding percentage of the sale price is made available to the beneficiaries of your estate.

7. What happens if my heirs wish to retain the property?

With a lifetime mortgage, generally, they are free to do so providing they pay the total amount owed to the provider within six to twelve months of your death.

Generally this is not possible on a full Home Reversion Scheme.

8. If I sell my home, must I buy a new house?

Sometimes circumstances can arise when you may want to sell your home, but don't intend to buy another property. You may for example live with relatives or move into residential care.

If this happens, you will usually have to repay the amount due to the provider from the proceeds of the property although some lenders may allow you to keep the property.

9. What happens if there is a change of ownership?

Change of ownership can be requested following marriage, divorce or remarriage. This may result in you having to repay part of the loan.

10. Can I end the plan early?

If your situation changes, you may wish to repay your lifetime mortgage plan early. You should however, remember that these plans are intended to be long term plans and therefore, the provider may charge an early repayment fee. You cannot cancel a home reversion scheme once it has started.

11. Can I take more money later?

There are a number of circumstances that may allow you to release more equity in future but the availability of further releases will depend on criteria and conditions that apply at that time.

12. Will this affect my pension?

Taking out an equity release plan won't affect your State Pension or any personal pensions.

13. What about State benefits?

Equity release may affect means tested benefits. Your 55+ specialist will assess this for you.

14. What about tax?

Under current legislation, any cash sum drawn will not attract Income Tax or Capital Gains Tax

15. Why should I tell my family?

By using your property to improve your retirement, you will reduce the value of your estate on your death. This could lead to problems in future. We therefore strongly recommend that, unless there are exceptional circumstances, you discuss your intentions with your family before taking this big decision.

16. How much money can I release ?

The amount you can release depends on your age and the value of your property. Generally speaking, men can release more capital than women. Please refer to the calculator on the main page for guidance.

This calculator will help you investigate the amount which might be released, subject to advice

17. How long does the process take?

The process usually takes around 4-8 weeks from the time you sign the application until you receive your money.

18. Should I take legal advice?

Yes, you should appoint your own independent solicitor who will act on your behalf throughout and ensure that you fully understand the process at every step. We can refer you to a specialist, independent solicitor if you wish.

19. Will I need to take a medical?

Neither your income nor state of health has any bearing on your eligibility for a plan.

20. Could I lose my home?

All SHIP members have a no negative equity guarantee and, providing you do not break the terms of the agreement, a no repossession guarantee.

21. Is all equity release regulated by the Financial Services Authority?

Yes, lifetime mortgages and home reversion schemes are both regulated by the Financial Services Authority.

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Some of our Equity Release Lenders

Some of our Equity Release Holders

Most are members of SHIP (Safe Home Income Plans). Please click here
to find out more

Equity Release products, such as a Lifetime Mortgage or Home Reversion Plan, may reduce the value of your estate and could affect your entitlement to benefits. To understand the features and risks please ask us for a Personalised Illustration.

55+ Equity Release is a trading name of Mortgage Salad Ltd which is authorised and regulated by the Financial Services Authority and is entered on the FSA Register (http://www.fsa.gov.uk/register/) under reference 566220.

A fee of £690 will be payable upon completion of an Equity Release product. We will also be paid commission from the company that lends you money or buys your home.