If you are considering equity release schemes as an option for your retirement then you need to know that there are two main equity release plans and within those two plans there are multiple variations. Those variations will depend on your immediate needs and your provider will suggest what might be the best options for you.
For now though it is a good idea to get to grips with the two main plans available. One option is the lifetime mortgage. A lifetime mortgage is basically a particular kind of loan which is for people over the age of 55. It permits the release of equity from your home through a secured loan. Either you can pay the interest on the loan monthly which will limit your debt or you can let it accrue and pay it back upon sale.
Or there are home reversion plans. In this plan you would sell either all or a portion of the ownership of the property.
While you are selling ownership in part or wholly, you and your partner would still have the right to live at the property. That is until you both pass or choose to move out.
Either plan is essentially a loan that you take out against your property. It is a loan that you pay back only when the property is sold.