This means you take out a loan secured against the property. The loan is repaid from the proceeds of the sale of your home if you move out or when you die. You still own the house and can live there for as long as you like. You can cancel or change a lifetime mortgage, but you may incur charges for doing so.
This means you sell all or part of your property to a reversion company or an individual. They own all or part of the property. You receive money in return and can live in the property for as long as you like. You cannot cancel a home reversion.
The FSA has published a guide to help you understand how equity release works and the possible risks involved. They also suggest alternatives if equity release is not suitable for you. Visit:
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