Equity Release Advice Solicitor

Equity release is a way to access some of the money tied up in your home without having to move. However, the process is not as straightforward as it sounds and should be cautiously approached. Before taking out an equity release, it's vital to know exactly what it involves and seek independent legal advice to understand the risks and whether you have alternative options.

Equity release has benefits, such as covering significant expenses later in life, such as long-term care, but there are also downsides to accessing the value of your home this way.

How Does Equity Release Work?

An equity release can provide you with a lump sum or an income in exchange for part of the value of your home. You can do this by using a mortgage or selling that portion of your home to continue living there as long as you wish. You can consider different types of equity release, each with its own merits and demerits.

What are the Benefits of an Equity Release?

The apparent advantage of equity release is that it gives you money to spend immediately instead of leaving it tied up in your home. Because of the steady rise in house prices, most homeowners have their wealth tied up in their properties and is inaccessible. An equity release can allow you to access some of that money from your house to supplement your income and cater to your living expenses, such as long-term care.

Whether equity release is right for you or not depends on your circumstances. Some of the reasons you should consider it include:

  • Your other savings and/or sources of income are not enough to meet your retirement needs
  • You don’t want to downsize
  • You don’t mind reducing your family’s inheritance
  • An independent financial advisor has told you this option is best for you

What are the Risks and Pitfalls of Equity Release?

The main disadvantage with equity release is that it doesn't pay you the full market value of your home. If you choose this method, you will receive far less money than you would from selling the property on the open market. However, you won't have anywhere to live if you choose to sell it.

Another downside of equity release is that it reduces the amount of inheritance your beneficiaries will receive.

There are additional risks to equity release. For instance, the home has to be vacated very quickly after your death, which can be a large additional stress on your family.

Considering the various requirements associated with an equity release, you need an independent legal advisor who can help you understand the contract's different terms and requirements and determine whether it is a good option for you and whether you have alternatives.

In such instances, we recommend taking legal and financial advice first before starting the process to avoid unnecessary expenses.

With our extensive selection of qualified and experienced solicitors, the independent legal advice you need is within reach, and you can book a free consultation online to get things started. Choosing an independent adviser means you get transparent advice that helps you understand your options and obligations should you choose to go with the equity release.