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Equity Release

Things You May Not Know About Equity Release

30th September 2021

You may have heard or seen advertisements for equity release. You could be considering the option, however there are implications you may not have thought of, therefore it is important to understand what it means for you, your future, and your beneficiaries. 

What Is Equity Release?

Equity release is an option if you are over 55 and if you have equity tied up in your home. The benefit of equity release is that you can take money from the equity in your home, which can be released as a lump sum or in smaller installments to pay for things you need now. Payments can also be in a combination of both lump sum and installments. 

Taking advantage of the equity release program may seem like a no-brainer, but it is not as simple as it may seem, which is why it is important to consult a solicitor so you are able to make informed decisions about your financial future. 

What You May Not Know About Equity Release

Equity release is an excellent way for homeowners to access funds to help with their finances during retirement.  It also helps reduce your estate for inheritance tax purposes if your estate is over the inheritance tax threshold.  It can also help you pass some of your estate to your loved ones before you require it for care fees. Please contact an Equity Release Broker for specific advice about the correct product to suit you.

How can we help?

After you have spoken to an Equity Release Mortgage Broker or Provider, they will ask you to appoint a solicitor to advise you about the Mortgage Deed that you will be required to sign.  They also need to ensure that you have been advised that your beneficiaries will get less from your estate.   The Mortgage Deed is a legally binding agreement so the Provider will ensure that you have obtained independent legal advice.  Elizabeth Middleton Solicitors is experienced in this area of law and will help you navigate it to ensure that you get your monies as quickly as possible.

What Is The Equity Release Council?

The Equity Release Council is an organization whose mission is to promote safe equity release plans.  It also regulates the Solicitors that work on your behalf to ensure that you receive a quality service from your Equity Release Brokers, Solicitors, and Providers.

What Happens With Long-Term Care Decisions?

When moving to long-term care, the Equity Release mortgage will come to an end. At that time, your home is sold, and the Equity Release Provider will have their mortgage paid from the proceeds of the sale of your property. If you have a spouse and only one of you moves to long-term care, the spouse may remain in the home until they pass away or move to long-term care. 

This is where Elizabeth Middleton Solicitors can help. Our friendly team prides itself on answering all the questions you might have about equity release and helping you make the right decision for your future. We believe that everyone should be treated with respect, kindness, and receive personal service that meets their needs. 

Contact us today and see if equity release is right for you.