People are increasingly looking at ways to release the money locked up in the value of their home to improve their finances in retirement. One option is an Equity Release Scheme which allows property owners to cash in on a home’s value without selling or downsizing to a cheaper property.
At Linder Myers, our equity release solicitors can advise you on the legal complexities of such schemes and give you clear and independent legal advice to ensure that you fully understand the implications of you taking up an Equity Release Scheme; both during the operation of the scheme and the impact on your estate once you have passed on.
There are two main types of equity release schemes:
A lifetime mortgage is different to an ordinary mortgage in that you do not have to make monthly payments. Instead, the capital and interest is rolled up, and is repaid to the lender only in the event of death, or a transfer into long-term care. You may opt to receive a lump sum payment or small regular sums.
A Home Reversion Scheme is where you sell part of your property to the lender for an agreed price. The lender then allows you to remain in the property rent free. When the property is eventually sold, the lender will recover what they have lent with interest.
Equity Release Schemes are regulated by the Financial Services Authority (FSA) and, because there are so many schemes available, we would strongly advise that you speak with an independent financial advisor to obtain advice as to which scheme is best suited to your circumstances.Contact our Conveyancing team for more information