Equity release schemes are a way to release some of the value that has built in your immovable property. While it is a great way to make the most of your money, and to increase cash flow, there is often a view that equity release ultimately results in the loss of your home.

Repossession is always a concern when it comes to loans and a mortgage is a kind of loan. The existence of a debt means that there is always a concern of repossession and of losing your property. With home reversion, since you do not take a loan, there is no worry of repossession.

Home reversion is a type of equity release where the financial institution makes a payment for a percentage of the value of the home. Home reversion offers inheritance protection, since you do not accrue any debt and when the house is sold, the proceeds are split between the equity provider and the estate.

The percentage of the selling value of the house that goes to the equity provider is the percentage of the equity that has been released. For example, if the provider has paid off 25% of the value of the property, when the house is sold, they will get 25% of the selling costs and the remaining 75% will go to the beneficiaries.

Equity release can be beneficial to people who want to use some of the value in their property but do not want to sell or relocate. Equity release offers the convenience of freeing up some of the value of your house without having to lose the house.