Expert VerifiedHow Does Equity Release Impact Property Title Deeds?
- Last Updated: 05 Aug 2025
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Be aware. Equity release comes with drawbacks which are important to think about. Lifetime mortgages are secured loans. Compound interest means the amount you owe can grow quickly. Equity release reduces your estate's value and may impact means-tested benefits.Key Takeaways...
- Equity release can affect your property title deeds by transferring ownership to the lender, depending on the type of plan you choose; however, in most cases, you retain the title deeds and ownership.
- Title deeds act as proof of ownership and secure your loan, remaining in your possession after the plan ends, unless you opt for home reversion.
- Generally, retaining ownership without transferring deeds is possible, ensuring you remain the legal owner.
Securing an equity release plan involves an administrative effort, and you may be wondering what you should know about property title deeds and equity release.
But what if you do not know where your title deeds are, whether your name is on them, whether your property is registered with the Land Registry, "am I eligible for equity release?, or even "is equity release a con", as this requires careful evaluation of it's implications.
In This Article, You Will Discover:
The team at EveryInvestor has put together this comprehensive guide to help you understand how all this works.
Therefore...
What is Equity Release and How Does it Work?
Equity release offers a financial solution for individuals over 55 to access the capital tied up in their homes.
What is the Process for Equity Release?
Equity release in the UK has become a popular financial strategy for retirees looking to supplement their retirement income.
Consider the equity release age requirement before proceeding with any applications.
It is a viable option for those looking to enhance their financial situation in retirement or to meet specific financial objectives.
The market predominantly features two types of equity release on a house: Lifetime mortgages and home reversion plans.
In a lifetime mortgage, you take a loan against your home's value, repayable from your estate later.
Home reversion involves selling a share of your property in return for a lump sum or a series of payments, whilst maintaining residency.
Homeowners considering re-mortgaging often find a re-mortgage equity release calculator useful for comparing potential outcomes and assessing the viability of this financial strategy.
The equity release process in the UK may have specific regulations and guidelines that borrowers need to adhere to.
In some cases, individuals may pursue equity release compensation claims if they believe they were misled or mistreated during the process.
Martin Lewis’ Advice on Equity Release
Martin Lewis, a trusted UK financial expert, often advises caution when considering equity release.
He emphasises the importance of understanding the long-term impact, including how it reduces the value of your estate. His key advice is to seek independent financial advice to ensure it’s the right decision for your specific circumstances.
He also highlights the high costs involved, including interest that compounds over time.
Martin Lewis urges homeowners to explore alternatives, such as downsizing, before committing to equity release, which he considers a “last resort” option for some.
What Does Equity Release Allow & What Does it Offer?
Equity release allows you to access the value tied up in your property without the need to sell or move out.
Typically available to those aged 55 or over, it offers a way to unlock cash while remaining in your home.
The most common types include lifetime mortgages and home reversion plans, each with their own set of features and considerations.
How Can I Release Money from My Property?
You can release money from your property through equity release. It involves either taking out a loan secured against your home or selling a share of your property.
This allows you to access the cash tied up in your home whilst still being able to live there. It is important to carefully consider the implications and seek advice before proceeding.
What Happens When You Inherit a House with Equity Release?
If you inherit a property with an equity release plan in place, the loan must usually be repaid after the homeowner passes away.
This is typically done by selling the property, as equity release lenders expect full repayment from the sale proceeds. If the loan exceeds the home’s value, the “no negative equity guarantee” protects beneficiaries from owing more than the property is worth.
In some cases, inheritors can pay off the loan from other funds and keep the property. However, they will need to act quickly, as most lenders expect repayment within 6-12 months of the homeowner’s death.
Is Transfer of Equity a Good Idea for Homeowners?
Transferring equity may be a good idea if you are looking to change ownership without selling the property. For instance, you might want to transfer ownership to a family member or partner.
However, it’s important to know that transferring equity doesn’t release cash like an equity release scheme would, and there may be tax implications.
Before proceeding, speak to a legal advisor to fully understand the consequences, particularly how it might affect your estate and any future equity release plans. In some cases, transferring equity can complicate your financial situation rather than simplify it.
Understanding Property Title Deeds: What You Need to Know
What is a Property Title Deed?
A property title deed1 is the document that shows the chain of owners, past and present, of a property.
The title deed includes the following...
- Conveyances
- Contracts of sale
- Wills
- Mortgages
- Leases
Can I Use Equity Release If I Only Have Property Title Deeds?
You can use equity release with only Property Title Deeds in hand.
The title deed is a crucial legal document confirming your rightful ownership of the property.
With this ownership, you have the ability to access the equity tied up in your property, even if the mortgage is fully repaid, by choosing an equity release scheme.
It is important to note that equity release may not be the best option for everyone.
Since each homeowner's situation is unique, consulting with a financial advisor is advisable before proceeding.
Equity release could affect your tax situation and eligibility for state benefits.
Additionally, given that property values can vary, the equity remaining after releasing some of it might be less than anticipated.
How Are Property Title Deeds Affected by a Home Reversion Plan?
When you take out an equity release plan, there may be changes to your title deeds, which are the legal documents proving your property ownership.
What Happens to My Title Deeds if I Take Out a Lifetime Mortgage?
If you take out a lifetime mortgage, you retain full ownership of your property.
However, the equity release provider will register a first legal charge on your title deeds at the Land Registry.
This means the provider has a legal claim over the property, which will be settled when the plan ends (typically when you pass away or move into long-term care).
The title deeds will still show you as the owner, but the equity release provider will have a legal interest in the property.
What Happens to My Title Deeds if I Take Out a Home Reversion Plan?
If you take out a home reversion plan, you sell a portion or all of your property to an equity release provider in exchange for a tax-free cash lump sum, a regular income, or both.
In this case, the title deeds will be updated to reflect the shared ownership between you and the provider.
The exact changes to the title deeds will depend on the terms of the agreement and the proportion of the property sold.
In short...
- With a lifetime mortgage2 , you retain ownership of the property, but the mortgage will be added to your title deed.
- With a home reversion3, you effectively sell all or part of your home to the lender, so the lender will be listed as the owner or part-owner of the property on your title deeds.
Remember to seek advice...
In both cases, it is essential to seek professional advice from a qualified equity release advisor who can guide you through the process and help you understand the implications of changing your title deeds.
An advisor can also help you explore alternative options if equity release is not suitable for your situation.
Trusts
Should your property be held in a trust4, the trust would need to be unwound before completing an equity release deal because a property must be free of encumbrances to qualify for equity release.
The nature of a trust means that the property's equity passes to the beneficiaries.
However, an equity release agreement requires that the lender has the first legal charge (first claim) to the property, which contradicts the principles of a trust.
Charges
In the case of equity release, ‘charges’ refers to any debt registered on your property, such as mortgages, secured loans, or existing equity release plans.
County Court Judgements5 or any other debt will also be registered against the property.
These will all need to be settled as part of the equity release agreement because your lender requires that it be the only charge on your title deeds.
Do you pay taxes on equity release?
Depending on your location and circumstances, taxes may apply to the funds received through equity release.
Covenants and Restrictions
Covenants and restrictions are also listed on your title deeds and refer to any agreements related to your property and another landowner.
For example, a restrictive covenant may cover aspects such as what you can use the property for.
A positive covenant is an obligation, such as maintaining fences and driveways.
These are standard, and you should have been made aware of them when you bought the property.
Equity Release Title Deeds: UK vs. Other Countries
Equity Release Title Deeds in Other Countries in the UK
Other countries in the UK have different arrangements when it comes to title deeds registries.
Scotland
The Scottish Land Registry6 oversees land transactions, and almost the same rules apply to title deeds and equity release agreements as they do in England.
Northern Ireland
Northern Ireland has its own land registry7, which falls under the auspices of Land and Property Services.
The title deeds will also list the previous owners, charges (including equity release plans), and covenants.
Wales
Besides those registered in England, HM Land Registry8 also manages Welsh property transactions.
Welsh title deeds would contain the same information as title deeds in the rest of the UK.
Managing Equity Release Title Deeds: Tips and Guidance
How to Find Out if My Property’s Registered With HM Land Registry
To find out if your property is registered with HM Land Registry, you can visit the website, where you will enter your property name / number and your postcode, and the results page will show if your property is registered.
It became compulsory to register all property transactions from 19909, and any mortgages or equity release plans attached to a property from 1998.
How Do I Obtain a Copy of My Property’s Title Deeds?
You can obtain a copy of your property deeds from the land registry office.
First, you will need to discover whether your property is registered with the land registry office, especially if you bought it prior to 1990 and have not made any amendments or taken out any loans against the property since then.
If your property is registered, you can download copies of your property summary, title plan, and title register.
The property summary includes the following...
- The property’s address (the one held by the Royal Mail)
- The property description
- The tenure type (the type of ownership on the property)
- Any restrictive covenants (restrictions on how you may use the land)
- Any easements (the rights of one piece of land over another, for example. a right of way)
There is no charge for a copy of the property summary.
However, if you need details of any restrictive covenants or easements, you will need to buy the title register.
You will also need to order an official copy of the property summary if you need to prove ownership of the property, such as in court.
The title register includes the following...
- The title number
- The property owner
- The last purchase price for the property
- Whether the property has a mortgage
- Details of any restrictive covenants
- Details of any easements
Your title register may not include details of the restrictive covenants or easements but will point you to which documents do.
The title plan includes the following...
- The property’s location
- General boundaries
A copy of your title plan will cost £3.
However, some title plans can not be downloaded, and will have to be mailed to you at a cost of £7 per document.10
How Can I Utilise an Equity Release Calculator for Financial Planning?
Utilising an equity release calculator empowers you to make informed decisions regarding your finances.
By inputting details such as your age, property value, and outstanding mortgage, you can estimate the amount you could release.
This tool provides clarity on potential releases and helps you plan for the future with confidence.
Ensuring Clarity: Navigating Land Title with Equity Release
How Can I Determine Land Title Ownership with Equity Release?
You can find out who is on your land title with equity release via the HM Land Registry office.
They can provide details of anyone else who has shares in your property.
You may need this information as equity release only allows for two co-owners of a property.
If more than two people are listed as property owners, their names will need to be removed from the title deed before the equity release application can proceed.
How Can I Register an Unregistered Property?
You can register an unregistered property through the HM Land Registry office.
A property must be registered when you take ownership or take out a mortgage on it.
It is also advisable to register your property voluntarily if it is not yet on the land register.
Voluntary registration provides the following benefits...
- It provides proof of ownership.
- It protects your land against fraud (such as it being sold or mortgaged illegally by a third party).
- It makes it easier to sell or mortgage your property in the future.
The steps you will need to take to register your property are:
- Search the register to make sure it is not already registered.
- If it is not registered, apply to the Land Charges Register11, which will send you any charges on your property all the way back to 1925.
- Complete a first-time registration form.
- Provide a scale plan of your property if there is not one in the deeds.
- Find out what other documentation12 you need (depending on whether you have bought or inherited the property) and submit two copies of the documents.
- The fee for the registration will depend on the value of your property.
- Send your documents, forms, and fees to HM Land Registry.
Mis-selling of equity release occurs when individuals are provided with inaccurate or misleading information about the product, leading to inappropriate financial decisions.
Common Questions
Yes, equity release shows on the land registry as the names of all companies that hold charges on your property are listed, including equity release providers.
Yes, two people can hold shares on land registry title deeds at the same time in either a joint tenancy or a tenants-in-common arrangement.
You will need to decide what type of joint ownership you want if you buy, inherit, or become a trustee on a property with someone else.
The features of a joint tenancy include the following…
- You have equal rights to the whole property.
- The property automatically goes to the other owner when you pass away.
- A third party cannot inherit your share of the property.
The features of a tenants-in-common arrangement include…
- Shareholding in the property can be different or unequal.
- The property does not automatically go to the other owner when you pass away.
- A third party can inherit your share in your will.
You can swap between the two types at no fee.
No, you cannot take equity release if you are not on the property title deeds because you do not have any equity in, or rights to the property according to English law.
Learn More: Rules and Regulations for Equity Release
Yes, you need permission from everyone on the title deed to release equity.
If you co-own a property with your spouse or life partner and your names are on the title deeds, both parties must agree to equity release.
Transfer of equity of properties is not the sale of a property but the legal process of adding or removing someone from the title deeds.
This commonly happens when…
- The owner wants to add a new partner or spouse.
- There is a divorce, or the relationship ends, and one of the partner’s names needs to be removed.
- There is joint ownership, and the equity shareholding is changed.
- An equity share is given to an adult child or other family members for tax efficiency as a gift.
You would choose a transfer of equity of properties with equity release because it would allow your spouse or partner to continue living in your home if you predecease them.
For example, you bought your property before you married or your partner moved in, and the title deed is only in your name.
Fast forward, and you want to take out an equity release plan in your later years.
If only your name is on the title deed, the equity release can only be in your name.
If you pass away before your spouse, the property will be sold to repay the equity release, and your partner will need to leave the home.
If both of your names are on the title deeds, you can take out a lifetime mortgage in both of your names.
The lifetime mortgage only ends when the surviving partner passes away or goes into care, so they can continue living in the home until then.
The tax and stamp duty implications when transferring property equity depend on the reasons for the transfer and whether there are any mortgage considerations.
Stamp Duty Land Tax (SDLT)13 is applicable if the property has any chargeable considerations and whether they exceed the SDLT on transferring equity of £250,000.
The chargeable consideration is calculated on the amount of debt taken on (e.g., a mortgage) and the amount paid for the equity being transferred.
This may still be the case if the person receiving the equity already has shares in the property.
SDLT will not be applicable if the transfer of equity is the result of the following…
- A divorce or dissolving a civil partnership.
- Gifting a property to family members or a third party.
- Inheriting the property.
Equity release does not usually affect your property title deeds.
In most cases, you will still retain ownership of your property and hold the title deeds.
However, a legal charge will be placed on the property by the equity release provider, which means that the loan will need to be repaid when you pass away or move into long-term care.
It is important to understand the terms and conditions of your specific equity release scheme to ensure you fully understand how it may impact your property title deeds.
Yes, in most equity release schemes, you can retain your property title deeds.
Whilst the equity release provider will place a legal charge on your property, you will still maintain ownership and possession of the title deeds.
It is essential to review the terms of your chosen equity release scheme, as some providers may have specific requirements or conditions regarding the retention of property title deeds.
After an equity release, you typically retain ownership of your property title deeds.
However, a legal charge will be placed on the property by the equity release provider.
This charge ensures that the loan amount, including any accrued interest, is repaid when the property is sold, you pass away, or move into long-term care.
It is crucial to consult with a qualified solicitor to understand the specific details and legal implications regarding your property title deeds in relation to your equity release scheme.
Property title deeds represent legal ownership of a property.
In an equity release scheme, you generally retain possession and ownership of your property title deeds.
However, a legal charge is placed on the property to secure the loan provided by the equity release provider.
This charge ensures repayment of the loan, along with any interest accrued, upon certain events such as the sale of the property or when you pass away.
It is advisable to seek legal advice to understand the rights and responsibilities associated with property title deeds in an equity release scheme.
Concluding Thoughts
Understanding the relationship between property title deeds and equity release is crucial for UK homeowners considering this financial option.
Equity release plans can have different implications for your title deeds.
Whilst lifetime mortgages allow you to retain full ownership of your property, home reversion plans involve selling a portion or all of your property to the equity release provider.
Individuals considering equity release should seek professional equity release advice to navigate the complexities of this financial decision.
Learn More: Lasting Power of Attorney In Equity Release
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