Equity release may not be appropriate for everyone, but it is certainly an option that can prove useful for many people. Opening up the value of your property and increasing cash flow can be beneficial in a number of ways, and the fact that there are different types of equity release options to suit different needs only makes it more appealing.

Equity release is basically a way to release some of the equity that has built up on your property. This money is then treated either as a loan or as a payment for part of the property. Equity release usually does not need to be repaid while the recipient lives in the property, so there is no need to sell the property in order to release some of the value.

Home reversion is a type of equity release, where the property is sold after the recipient's death and the proceeds are divided between the equity release provider and the policy holder's estate. The percentage of division is obviously proportional to the amount of equity released.

Lifetime mortgage is another type of equity release. Lifetime mortgages involve the use of released equity as a loan, which accrues interest. The principal amount plus the interest are paid back to the lender after the policy holder has died or moved into permanent care.

Equity release policies can be very useful for those who wish to release some of the equity in their property, either to get a comfortable income during retirement or for a one off lump sum payment such as a dream holiday.