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Attractive features of equity release schemes such as sell and rent back are that they can give a lump sum, a regular income or both. Lump sums can consist of tens of thousands of pounds; the income boost might be worth as much as a hundred pounds a month or even more.

Money that is released from the value of your principle residence is free of tax, although if the cash is then invested there may be tax to pay on any income or growth. To unlock equity you don’t have to move house or sell your home, with reputable equity release schemes there is a rock-solid guarantee that you will be able to continue to live in and enjoy your home until the day you die.

If you don’t have children or family to leave your property to, then equity release might seem an even more attractive concept.They can also be a way of cutting inheritance tax bills. Inheritance tax kicks in at 40% on everything left behind over £312,000 (2008/2009). Importantly, that figure includes the value of your home.

As the value of many properties has increased over the years this means that IHT is no longer something only the rich have to pay. Equity release plans are a perfectly legal way of mitigating inheritance tax.

Before you decide to go ahead with an equity release plan it is worth considering whether funds could be raised from other sources, as a equity release plan will not always suit everyone.

A home revision scheme is one form of an equity release scheme, you sell your home or a share of it to a reversion company for a lump sum or in return for a monthly income or a combination of both, whichever works best for you. Technically you become a tenant, albeit with the right to continue living in your home rent-free (or sometimes for a nominal rent) for the rest of your life.

It can be expected that many more people will look to release equity from their properties while interest rates remain low, mortgages are paid off and house prices remain stable.