Equity Release products are designed for people over 55 to take cash value from their homes without having to move. There is a wide range of Equity Release products which can provide a valuable source of income for some people.
These schemes allow the borrower to stay in their home and benefit from the cash released from the equity of their property until certain events occur for example moving into long-term care or death. At this point the lender will be repaid, usually through the sale of the property.
There are different types of Equity Release Scheme, some of which mean ownership or part-ownership of the property passes to the Equity Release provider and others where a cash sum is drawn from a promise to repay the lender on the sale of the property. It is important if you are considering an Equity Release scheme to understand the differences between these scheme types and this is something we can help you with.
Equity release can be very useful in some circumstances but it is essential to seek advice on whether it is suitable for you. We will help you understand if it is the right option for you, so please get in touch if you are considering an Equity Release scheme. We are experts in this market and will make sure you receive the right advice.
As part of the advice process, consideration must be given to discussing proposed actions with family members given that the estate is likely to reduce in value. It is good practice to consider alternative means of raising capital such as downsizing, financial assistance from family members, the availability of grants and other forms of borrowing. Additional costs may be involved when entering into an Equity Release arrangement such as lenders arrangement, valuation and legal fees and these vary by lender. Once equity has been released, it remains your responsibility to maintain the property at your expense. Releasing equity from your home may affect any entitlement to state benefits.
It is essential that independent legal advice is sought prior to completing a release of equity from your property.