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The cash lump sum released from your home is tax-free. However, if you decide to place this money in a savings account, secure a regular income, or make an investment, tax may then be payable on any interest, income or gains you receive.

It depends on the plan you choose and if it is in joint names or just one name. If the plan is in your sole name and you have to move into permanent residential long-term care, your home would have to be sold and the amount you released, plus the interest accrued, must be repaid. If it is in joint names and only one of you moves into permanent long-term care then the other homeowner has the right to remain living in the home.

Yes. There will generally be advice and arrangement fees, legal fees and valuation fees. While some of these may be able to be added to the amount you release, others may have to be paid upfront. Remember that by adding fees to the amount of equity you release, the greater the proportion of your home that will be owed to the plan provider (or the less money you will be able to release).

Yes. with both types of equity release, you remain responsible for insuring the property and maintaining it, even if you take out a home reversion plan and sell 100% of your property.