Jargon Buster

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Early Leaving
If you have sold the whole of the equity in your property and have to surrender the lifetime lease early, for any reason, then reversion plan providers will normally make an Early Leaving payment to you. The size of payment is normally dependent on your age and the length of time that you have been in the plan. As mortgage plans are currently structured to be for life or the need to go into care, some plan providers make early repayment charges to plan members who surrender their leases early.

Equity
Equity in property terms, is simply the value of your home minus any existing mortgage. So, if your home is currently valued at £140,000 and you have an existing mortgage of £40,000, then the equity in your home is £140,000 - £40,000 = £100,000.

Essential Repairs
If the valuer identifies essential repairs, these will normally have to be completed before the Equity Release plan provider releases any monies.

Estate
The value of all your assets, including your home, any savings and all other possessions minus any debt e.g. a Lifetime Mortgage.

Ex-Council Houses
Plan providers will normally accept ex-council houses, epecially on estates where the majority of the council houses have been sold. Generally, plan providers want to see that you have owned your ex-council property for at least three years before the Equity Release transaction.

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