How Long Will Equity Release Fund Care Costs?

Home care vs residential care — the key difference for equity release

If you fund care at home with equity release, you remain in the property and the plan continues. Interest compounds on the loan, but the property is still yours and no repayment is triggered.

If you move permanently into residential care, the equity release plan is triggered — the property must be sold and the loan repaid. Any proceeds above the loan balance pass to the estate. Temporary stays (hospital admissions, respite care) do not trigger repayment.

Why a drawdown plan lasts differently to a lump sum

With a lump sum plan, interest compounds on the full amount from day one. With a drawdown plan, you draw only what you need each month — interest accrues only on the amount drawn, not on funds held in reserve. For care funding, where costs are regular and ongoing, drawdown is often the more efficient structure. The undrawn portion of your facility remains interest-free until you access it.

What happens when care funding runs out

If equity release funds are exhausted and care costs continue, options include: local authority means-tested support (if below capital thresholds), using remaining property equity (if the property has not yet been sold), other family resources, or a care annuity product. Planning ahead matters — this tool is designed to help identify the timeline before decisions are made.