After your death, your property will be sold and the equity release plan paid off. This will include the lump sum, interest and any other additional costs. There will also be estate agent’s and legal fees in respect of the sale. Any remaining money will pass to your beneficiaries under the terms of your Will.
If your beneficiaries wish to keep the property and your equity release plan is a lifetime mortgage, they can usually pay off the equity release company either with cash or by taking out a mortgage themselves.
If you have taken out a home reversion scheme, then the lender will require the property to be sold. With this type of equity release, the lender will generally want the property on the market within four weeks of death, meaning it will also need to be cleared very quickly.