Equity release is also available for Buy to Let Landlords and owners of Second Homes. The market for these plans is limited and there is less choice than for plans on a main residence.

The lifetime mortgage enables property owners to release equity from a rented property without disrupting the income stream from the rent. An Assured Shorthold Tenancy (AST) must be in place.

This appeals to clients who don’t want to use their main residence or for those who have entered sheltered accommodation or a care home but have kept their house and rented it out.

Plans under FCA regulation and benefitting from Equity Release Council safeguards must be on an owner occupier basis. This means that this plan is not regulated by the FCA, however, it offers similar legal safeguards including a ‘no negative equity guarantee’.