If you are looking for legal advice on releasing equity from your home, the property law experts at Clough & Willis can provide a professional and highly educated service that will help you decide on the best course of action.
Equity release is a specialised area of conveyancing law that allows homeowners to convert equity tied up in their property into disposable income. It can be highly beneficial, but comes with numerous financial and legal implications and considerations that must be taken into account before committing to any specific financial scheme.
The team at Clough & Willis, led by Partner and Head of Residential Property Lorraine Stratton-Webb, will work to help you understand the legal aspects of your chosen equity release plan and deal with the legal requirements, ensuring the process is made simple and stress-free as possible.
To find out more about our equity release advisory service, contact us by calling 0800 083 0815, or fill out our to request a call back at your convenience.
How we can help
The team at Clough & Willis has considerable experience in the field of property law, and solicitors specialising in equity release who can advise you on all of the legal implications of the various equity release plans available on the market.
Although solicitors cannot provide financial advice, we are able to work alongside financial advisers to talk clients through all aspects of the legal process, as well as advising on the requirements and timescales involved in an equity release scheme.
Before deciding to take out an equity release plan, it is essential to first obtain appropriate independent financial advice to ensure it is suitable for you. Consulting a solicitor should not be seen as a replacement for speaking to a qualified financial adviser, but it can help to ensure the equity release process is completed as quickly and efficiently as possible.
What is equity release?
Equity release schemes are open to homeowners over the age of 55, and provides a way for you to generate a lump sum or regular income from your property, which will often have soared in value since they were first purchased.
The plan will be secured against your property, with no monthly repayments required during the term of the plan, which will instead be repaid on your death or if you enter long-term care or sheltered accommodation. These schemes also have the advantage of allowing you to remain in your home, even as it generates capital to help fund your retirement.
What are the main types of equity release plan?
Lifetime mortgages
Lifetime mortgages are the most popular method of releasing cash against a property, offering a loan against the value of the home in the form of a cash lump sum.
Home reversion plans
Home reversion plans are another alternative method, involving the sale of a certain percentage of the property in exchange for a lump sum and a lifetime lease, allowing you to remain in your home rent-free for the rest of your lives. When the property is sold at the time of your death the proceeds of the sale are divided between the plan provider and your estate in the percentage that each party owns.
What are the advantages and requirements of equity release?
Equity release schemes are not appropriate for every set of circumstances, but can offer life-changing benefits in many instances:
- Money locked up in the home can be used for household improvements, weddings, holidays, etc, or to pay off existing personal debts.
- It allows you to remain in your home while also having access to your money.
- The money can be used to pay off an existing mortgage.
- It could possibly reduce inheritance tax bills by lessening the value of the your estate upon your death.
- No repayments are required until the home is eventually sold when you die, or move into long-term care.
- A majority of plans have a "no negative equity" guarantee.
Before you decide to release equity from your home, you must bear the following factors in mind:
- Your eligibility for means-tested benefits may be affected.
- The value of your estate will be reduced, and depending on the size and length of the loan, the entire equity in the property may be exhausted. As such, it may be necessary to discuss the possibility with your family before proceeding.
- Early repayment charges may apply if the loan is repaid early.
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