To reduce your costs, look for no set-up fees, estate agents fees and no home information pack needed as this is an off-market transaction. Company should be able to pay all your legal costs too, including that they subsidise the valuation fee which is payable on application and is refunded to you in full on completion.

By law, after the first year, you would not have a guarantee of tenure. If you decide to go for the scheme, you can get some piece of mind by going for an established company with many years in business. For instance, a company can offer a legally binding side letter stating that if they were ever to ask you to leave; they’d have to pay you a penalty of £10,000. A serious business should be aware that this side of the scheme may put clients off, so look for a company that are open to suggestions on making it more comfortable for you.

Home Cash Release is not ideal for everyone’s circumstances so before you make a decision here’s some disadvantages to consider.

• You’ll be selling your property for less than you’d receive on the open market although you’ll have no legal fees, estate agents fees, home information pack fees or excessive mortgage payments to pay.

• You may lose means-tested state benefits that you’re currently entitled to although the plan will not affect your State Pension.

• We recommend that you discuss your intentions with your family before you proceed as you’ll be selling the whole of your property so neither you nor your beneficiaries will benefit from any increase in its value in the future.

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