Nobody wants to pass on debt to their children, regardless of the equity plan you would like to select. Whilst this is possible with some equity plans, Essex Equity Release can ensure you choose a suitable equity plan that will never allow debt to pass onto children, with the help of the Equity Release Council.
It is a big myth that releasing equity means debt for your children. You can always choose to unlock cash with safe equity plans to prevent this from occurring.
Will I Owe More Than My Home’s Value?
Children will only inherit debt if you are left with loans to repay after selling your home or passing away. However, with the equity plans that we have available, you will always receive ‘no negative equity’ guarantee. This ensures you never owe more than the value of your home regardless of which equity release plan you choose from Essex Equity Release.
When you move into long-term care or pass away, sale proceeds are always used to repay the amount you owe, with any leftover money going to your estate. Even if the amount left is not enough to pay the outstanding loan, neither you or your estate will be liable for this payment.
Equity can always be repaid before death, however, this should not be a big worry for customers who are fearing their children will inherit any debts. It can even cost extra to make early repayment charges.
Moving Into Care
If you or your partner do move into long-term care, one of you can still continue to live in the property, allowing the plan to continue without changes. However, if this happens to both of you, the property will have to be sold as the plan ends. If this occurs, there will be no early repayment charges.