Equity
The value of your property in excess of any amount owed on a mortgage or other loan secured against it.

Equity Release
A way of unlocking the equity in your home to provide a cash lump sum, a regular income or a mixture of the two.

There are different types of equity release products, lifetime mortgages and home reversion plans t6o name but a few.

Estate
The value of your assets, including all your savings, possessions, and home.

Full Open Market Value
This is the amount that an independent valuer would confidently expect a property owner to obtain if the property was sold today.

House Price Inflation
House price inflation is the amount by which a property increases (inflation) or decreases (deflation) over time. The government measure this on a monthly basis on both a regional and national basis via a House Price Index. This national index is weighted to account for regional differences in terms of value, location and concentration of houses..

Home Reversion Plan
A plan which allows a homeowner to sell part or their entire home to a reversion provider in return for a cash lump sum. The cash lump sum is normally discounted from the full open market value to reflect the fact the customer has the right to live in the property until they die or leave the property permanently, for example, to go into long term care. When the home is sold the reversion provider takes the equivalent percentage from the proceeds and the rest is paid to the customer(s) or their estate.

Inheritance Tax
A tax payable on the net value of your estate after you die. If your taxable estate is worth more than the inheritance tax threshold your dependants will have to pay tax on the amount above this threshold (£285,000 from 6 April 2006). Inheritance tax legislation may change in the future.

Lifetime Mortgage
A type of mortgage. You can take out a loan, secured on your property to provide either a cash lump sum or an income for life.

Negative Equity
If the amount you owe in mortgage and loans secured on your home is more than its market value this is called negative equity. Good lifetime mortgages include a no negative equity guarantee to ensure your family will never be left in debt as a result of taking out a lifetime mortgage.

Valuation
The inspection of your property by a qualified valuer who will prepare a report which tells the product provider what condition your property is in, what it is worth and how much it should be insured for.