An equity release is a form of mortgage wherein the lender, for a calculated share of the sales proceeds of the property, gives cash in return to the owner of the property. In other words, one can release money from the equity value of the property and continue to reside in the same home.An equity release loan is settled only after the concerned person vacates the property completely. The lender usually gets their money back in case of relocation or death of the property owner. When is it beneficial to opt for equity release? Seniors who are retired or unable to work due to health complications generally downsize their property to use the money for essential needs. But with an equity release, seniors can continue to live in the same property and not worry about paying off the loan till they plan to relocate. Before comparing plans across the top lenders, it is advisable to check free online calculators and assess the latest equity release rates. Types of equity release Depending on the cash requirement, the following types of equity release schemes are available for people generally above the age of 55. Lifetime mortgage Older adults, aged 55 and above, can consider taking up a lifetime mortgage. A loan can be taken against the equity of the current home at a fixed or capped interest rate. In most cases, the loan amount that is secured against the property value is repaid from the final sale of the home. This is done only when the owner passes away or relocates. The interest is also charged on the amount that is withdrawn and not on the entire value of the property. Home reversion mortgage Seniors above the age of 65 will benefit from a home reversion mortgage as they mainly will receive a lump sum tax free amount for the allotted portion of the home equity. They can then live in the property using the proceeds of the equity and manage retirement costs. If the property value does not fluctuate much, then this type of equity release is a better option over lifetime mortgage. Popular equity release companies in the UK Aviva Aviva lets seniors assess the property value by offering tax free lifetime mortgages. This amount can be used to supplement home needs and pay for future repairs or renovations. There are several benefits of taking up this type of lump sum loan. Homeowners retain the title of the property, and there is no negative equity as the sale proceeds should be sufficient to cover the entire amount with interest accrued. Aviva offers both a one-time lump sum and smaller cash payment option for its lifetime mortgage with flexible withdrawals and repayment options. The company also affords the opportunity to repay the mortgage early with no excess charges and downsizing protection included as part of the contract. Seniors can use Aviva’s equity release calculator to calculate latest rates. Halifax Halifax’s later lending plans feature beneficial loan options for seniors who do not want to take the risk of a mortgage. The company features lifetime plans for older adults aged 55 and above to help release some equity from their home, continue to live there, and use the cash completely tax free. Seniors above the age of 65 can additionally check out home reversion plans as well. Owners can simply sell a share of the property to receive a lump sum amount or regular fixed payments and continue to live there rent free. For more information on the best providers, seniors can check out the official industry body of Equity Release Council.