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Start NowAn Equity Release is a huge life decision that should not be made so lightly. Before choosing to go down this route, it is important that you seek out and receive specialist legal and financial advice from professionals.
Fortunately, our experienced conveyancing solicitors are on hand to help you in any way that they can. Our team's dedication will ensure that you and your loved ones get the outcome you deserve.
If the time arises and you need to access funds which are currently tied up in your property, an equity release can do just that - all without the need to move house.
However, it is important to note that there are two different types of equity releases which are notably different from the other.
Currently, a lifetime mortgage is the most common type of Equity Release. Much like your traditional mortgages, this is a loan which is secured against your house or property.
The money for this particular loan does not need to be repaid until your death or, in some cases until you permanently move into a residential care facility.
Alternatively, there is also a Home Reversion Plan. This type of equity release allows you to sell part, or all, of your home whilst you continue to live within it.
Your chosen reversion company will receive a percentage of the house's proceeds once a sale has been agreed. They will only receive this money once the property has been sold. Again, this is usually when a person dies or has to move permanently.
Understanding the risks and benefits of an equity release can be confusing, especially if you have no prior knowledge of the process and how to go about acquiring one.
We would always advise you to get appropriate advice from a licensed professional, whether that be a financial consultant or a solicitor.
To simplify the process, here are some advantages of an equity release. You will receive lump sums or smaller, completely tax-free payments to supplement your income; you will be allowed to continue living within your home until you die or are moved into permanent residential care; you may benefit from a potential rise in property value, you are allowed to move to a different property if it aligns with the rules set out by your equity release provider, and with a lifetime mortgage, you can keep ownership of your property.
As with any good thing, there may be downsides to this decision, and it is important to us that we provide you with as much information as possible to ensure you're making a move that is right for you.
As such, there are a few more things you need to know. With an equity release, your estate's value is likely to be reduced, as well as any amount left to the beneficiaries in your will.
Furthermore, a home Reservation Plan means you no longer own a part or all of your property - your chosen Reservation company does.
Let's not forget the effect it may also have on your income as well. When you receive a sum of money or payments to supplement your income, you may find your entitlement to any means-tested benefits has been reduced or cut, either immediately or in the future.
