If you are about to begin the business of investigating LV= equity release schemes, or indeed policies of this type offered at any financial establishment, it is important that you have a thorough understanding of the kind of product you are investigating.

An equity release plan basically allows you to use your property and assets to secure a sum of money from a third party lender. While this is basically true of all such schemes, there are many variations within the field and you will find that certain policies suit you better than others.

While a standard equity release policy allows you to withdraw a large lump sum when the loan initially pays out, a draw down policy affords you the opportunity to acquire a slightly smaller amount of money to start with. Once this has been received, you may typically make withdrawals at your leisure until the loan has been paid out in full.

Conventionally, equity release loans are the province of pensioners, and as a result, they are designed to extend beyond the scope of your lifetime. In this way, you are never required to repay the borrowed sum; rather, your house will be used to settle the debt.

While this is a good way of supplementing your pension plan and increasing your expendable income during your senior years, it is important that you remember that it also means you can leave no deceased estate as inheritance for your children and family. As the borrower, this is a disadvantage that requires your careful attention before you determine to make a firm decision regarding equity release.