Lease for Life calculator
More than 50% of us don't know what equity release actually is.
Equity release is apparently a mystery to consumers, with a third wrongly believing that they would have to make monthly repayments if they took out a policy. 38% did not realise that equity release could affect their state benefit entitlement, whilst a further 18% thought they would have to sell up should their partner pass away. Misunderstanding of Tax Implications: The issue of tax seemed to baffle most consumers questioned. A third of respondents did not know that a plan could reduce their inheritance tax liabilities, whilst a further 32% incorrectly thought that tax would be payable on the monies released from their property. Shockingly, 17% of respondents did not realise that equity release could affect the amount they may leave to their dependents.
Product Protection Ignorance: 28% of consumers did not know that equity release products are regulated by the FSA and thought that they would have no protection if they took out a policy. A further 36% did not know that most plans meant they would be protected from negative equity in the event of a downturn in the housing market.
Equity release is apparently a mystery to consumers, with a third wrongly believing that they would have to make monthly repayments if they took out a policy. 38% did not realise that equity release could affect their state benefit entitlement, whilst a further 18% thought they would have to sell up should their partner pass away. Misunderstanding of Tax Implications: The issue of tax seemed to baffle most consumers questioned. A third of respondents did not know that a plan could reduce their inheritance tax liabilities, whilst a further 32% incorrectly thought that tax would be payable on the monies released from their property. Shockingly, 17% of respondents did not realise that equity release could affect the amount they may leave to their dependents.
Product Protection Ignorance: 28% of consumers did not know that equity release products are regulated by the FSA and thought that they would have no protection if they took out a policy. A further 36% did not know that most plans meant they would be protected from negative equity in the event of a downturn in the housing market.