Whose names are on an equity release plan decides who has the right to go on living in the property. A plan in joint names protects the survivor. A plan in one name may mean the property has to be sold. And the Equity Release Council are clear that somebody who moves in after the plan has started may not be able to be added at all.
A plan in one name can leave the other person with nowhere to live. And somebody who moves in after the plan starts does not automatically gain a right to stay.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
The Equity Release Council are direct about it. If your plan is in joint names, your partner will be able to continue living in the property under the same terms. If it is in your name only then, unless the mortgage can be repaid in full, the property will have to be sold and your partner will have to find somewhere else to live.
They also describe the safeguard. Where the borrower clearly has a spouse or partner, it is normally a requirement that the plan is written in joint names from the outset, so that both people have the right to remain in the property until they die or move out. The safeguard works at the point the plan is set up, which is why the next section matters so much.
The Council say your property needs to be held in the name or names of the people applying. Where two people are applying and only one owns the property, it will usually be necessary to transfer the deeds into joint names first.
The solicitor stage →The Council are explicit: if you marry after taking out a plan, or if somebody comes to live with you as your partner, you must tell your provider. It is an obligation, not a courtesy.
When somebody else lives there →They say it may not be possible to add a new spouse or partner to your plan, in which case that person will not necessarily have the right to continue living in the property if you die or move into long-term care.
A solicitor can usually draft the transfer alongside the equity release work but will charge a higher fee for it. Ask for that quote before you instruct them to draft anything.
The fees involved →The Council note that some are not prepared to draft the transfer deed alongside the equity release, in which case a third-party solicitor has to quote separately for that work.
This is the part to read twice, because the consequence falls on somebody who was not there when the decisions were made. If you remarry, or a partner moves in, after the plan is in place, you must tell the provider. It may not be possible to add them, and if it is not, they will not necessarily have the right to carry on living in the property when you die or move into long-term care.
Nobody can tell you in advance what a provider will allow, and it is not something to assume either way. What you can do is ask early, get the answer in writing, and factor it into whatever else you are planning. It is a much better conversation to have while there are still options than after a bereavement.
The property has to be in the name of the person applying, so a title still carrying a deceased spouse has to be dealt with first. The Council set out England and Scotland separately, because the process genuinely differs.
In England, how your solicitor handles it depends on how you owned the property together, and there are two ways: joint tenants or tenants in common. As joint tenants, the solicitor simply needs a certified copy of the original death certificate to take the deceased person's name off the title. As tenants in common, a trust has been created and has to be wound up, and the complexity depends on whether there was a will, whether probate has been granted and who the beneficiaries are.
In Scotland the solicitor checks the title deeds and advises. In some cases an extract copy of the death certificate is enough. In others additional legal work is required, and that can be complex depending on whether the deceased left a will.
Whether a provider would add somebody to an existing plan. That is their decision, made case by case, and the Council say only that it may not be possible.
How you own your property, or what winding up a trust would cost. Your title deeds answer the first and a solicitor's quote answers the second.
Who has a right to live in your property, and what your title says. Those are legal questions answered by your deeds and by a solicitor who has read them. We are not solicitors or advisers, we have not seen your title, and provider decisions about adding somebody to a plan are theirs alone.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
Every one of these is a document or a question, and each one prevents a delay or a much worse surprise later.
Questions worth asking before the plan is written, not after.
Is this plan in both our names, and if not, why not?
It decides whether the survivor can stay. Where there is clearly a spouse or partner, joint names from the outset is normally a requirement.
If somebody moves in later, can they be added?
The Council say it may not be possible. Getting the provider's position in writing now is worth more than assuming.
Do the deeds need transferring, and what would that cost?
It is usually necessary where only one of you owns the property, and it carries a higher fee. Ask before the drafting starts.
Are we joint tenants or tenants in common?
It changes what happens on a death, and one of the two routes is considerably more work than the other.
What exactly must we tell you about, and when?
Marrying or somebody moving in are both on the list. Knowing the whole list avoids breaching a term without meaning to.
Short answers to the things that come up most. None of it is advice, and every figure on this page carries its source.
The Equity Release Council are direct about this. If the plan is in your name only then, unless the mortgage can be repaid in full, the property will have to be sold and your partner will have to find somewhere else to live. If the plan is in joint names, your partner can continue living there under the same terms.
Not automatically. The Council state that if you marry after taking out a plan, or if someone comes to live with you as your partner, you must tell your provider. They add that it may not be possible to add a new spouse or partner to the plan, in which case that person will not necessarily have the right to continue living in the property if you die or move into long-term care.
The Council say your property needs to be held in the name or names of the people applying, so where only one of you is the legal owner it will usually be necessary to transfer the deeds into joint names. A solicitor can normally do this alongside the equity release work but will charge a higher fee, and you should ask for that quote before instructing them to draft the transfer.
In England it depends on how you owned it together. As joint tenants your solicitor simply needs a certified copy of the original death certificate to remove the name from the title. As tenants in common a trust has been created and has to be wound up, with the complexity depending on whether there was a will, whether probate has been granted and who the beneficiaries are. Scotland has a separate process, and the Council advise asking for a quote at the outset in either case.
The Council say it is normally a requirement that where the borrower clearly has a spouse or partner, the plan is written in joint names from the outset, so that both people have the right to remain in the property until they die or move out. That safeguard operates when the plan is set up, which is why who is on it at the beginning matters so much.
Equity release may involve a lifetime mortgage, secured against your property, or a home reversion plan. It will reduce the value of your estate and impact funding long-term care.
One qualified equity release adviser. They will go through your figures and tell you if there is a better answer. It costs nothing and commits you to nothing.
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