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Equity release policies allow those aged 55 or older to release capital from their home without having to downsize. You may want to help your children onto the property ladder, pay off debts, renovate your property or indulge in some overseas travel. An equity release policy can provide either a lump sum or regular payments to give you the funds you need.
It is essential to have independent legal advice before you enter into an equity release agreement as you need to fully understand the implications. Our solicitors specialising in equity release will make sure that you have all of the information and guidance you need to ensure that you are making the right choice for yourself and your family.
Our property team have been providing equity release advice for many years and we have a sound understanding of the complex terms and conditions contained in policies as well as the different types of equity release products available.
We know that you may want to complete the transaction promptly and we are always proactive in moving matters forward, avoiding delays wherever possible and using our property expertise to resolve any complications effectively.
If you would like to talk to our East London equity release solicitors call us on 0208 989 3000. Or use our simple contact form to request a call back and we will be happy to answer your questions.
Our equity release services
Equity release advice
We will discuss the pros and cons of equity release with you, to include the different types of policy available, to ensure that it is the right option for your circumstances.
Putting together the property information needed by your lender
Your lender will have a range of questions and require information in respect of your property which we will provide promptly.
Going through your equity release offer and advising you
Once your formal offer is issued by the lender, we will provide full advice on the terms and conditions of the policy and the potential effects of the loan.
Dealing with the equity release loan completion
Once you and the lender are ready to go ahead, we will request completion and provide any remaining information needed. Following completion, we will check that the lender’s legal team have correctly registered the loan.
Everything you need to know about equity release
What is equity release?
The term equity release refers to a type of loan policy that allows you to free up capital from your home.
To be eligible for an equity release policy, your property will need to be in the UK and you will usually need to be aged 55 or older. Lenders will have their own individual criteria, including in respect of the property’s age, condition and value.
When you take out the policy, you will be provided with a lump sum or instalment payments or a combination of both. You will be able to continue living in the property, generally until your death or you move into a care home. At that point, when your home is sold, the loan plus any interest and charges will be repaid.
You may be able to move house if you want to, although there may be charges for this. You would also need to secure the lender’s consent and approval to the new property and you will not usually be able to move to a retirement property if you have an equity release policy, as it is usually a requirement that the property does not have restrictions on its sale. In the case of a retirement property, it can only be sold to a small number of buyers who meet the necessary criteria.
There are two main types of equity release policy:
- Lifetime mortgages; and
- Home reversion policies
What are lifetime mortgages?
Lifetime mortgages are the most popular type of equity release policy. You will be provided with a lump sum or regular payments and in return the equity release company will take a charge over your home.
You may be able to pay the interest on the loan each month or have it added to the amount of the loan.
What is home reversion equity release?
A home reversion scheme requires you to sell all or part of your property to the equity release company. Again, you may be able to have either a lump sum or regular income or a combination of the two.
The amount offered is likely to be between 20-60% of the value of your property. Younger borrowers will be offered a lower percentage.
Depending on the terms of the agreement, you may be able to live there rent-free or you may be required to pay rent if you are borrowing a larger sum. This could be a fixed amount or you may be advised of how it will increase over time.
Who can benefit from equity release?
Equity release can be an attractive option for those over 55 who have most of their capital tied up in their home and who do not want to move somewhere cheaper but who would like to spend some money during their lifetime.
Common reasons for releasing equity including day-to-day living costs, financial help for children, property improvements, consolidating debt and travelling.
What does a solicitor do during the equity release process?
If you ask us to represent you in the equity release process, we will check that you fully understand the implications of the agreement. These include in respect of:
- Your entitlement to benefits
- How does equity release work
- Tax
- Your estate and what you are leaving in your Will
- The amount that the loan will cost and how this will be calculated
- Whether the lender will allow you to move and their criteria for this
- What will happen if you want to pay off the debt and end the policy
- The fees the lender will be charging
- What the lender expects from you, including issues such as insurance and property maintenance
- Any potential drawbacks to the policy
We will also ensure that the lender’s legal team have all of the information they need in respect of the property to ensure that completion can take place without delay.
How long does equity release take?
The time taken for a lender to process your application will depend on how busy they are, but will often take up to 8-10 weeks.
Once the offer has been issued, we can advise on the terms and conditions.
The lender’s legal team are likely to request a range of information relating to the property and they will need replies to all of their enquiries before completion can be arranged. Depending on the amount of information required, this can take around a month.
What are the fees for an equity release solicitor?
Our equity release solicitors’ fees are excellent value for money. We will provide comprehensive advice, ensuring that you are fully aware of the terms of the policy and the effect that they will have. To discuss our equity release costs, please feel free to call us for a quote or to ask any other questions you may have.
Speak to our equity release solicitors in East London
Are you considering entering into an equity release agreement? We can provide the advice and guidance you need.
Call our equity release lawyers in East London now on 0208 989 3000. Or use the simple contact form below and we will get back to you soon.
