Equity Release Conveyancing

Understand Equity Release and use your value wisely

Many people later in life find themselves ‘asset-rich’ (their home) but ‘cash-poor’ (low savings). Equity release can provide a solution to this predicament, allowing individuals over 55 to remain in their homes while turning some of that 'locked up' value, or equity, into cash; either by drawing a single lump sum or more regular smaller sums.

However, as attractive as releasing this cash sounds, equity release is a major financial transaction with long reaching implications, reducing the value of an estate and potentially affecting the state pension or other benefits. So if you are thinking of taking out an equity release plan, you need to research, analyse and assess your options, considering both the legal and financial consequences. Here obtaining independent professional advice will help appraise you of the pros and cons.

Equity Release - gaining good advice

It is recommended that you take the advice of an Independent Financial Adviser (IFA) before entering into any equity release mortgage or home reversion scheme. However, it is not mandatory and you can, if you wish, go directly to a company offering a scheme. Aternatively, you can go to an adviser representing just one plan provider. The choice is yours. 

Whenever you are in doubt concerning any part of the scheme you should ask before you sign. Ensure that you receive in writing satisfactory replies to questions you want answering. You should also check that the scheme you choose allows you to move home in the future should you consider this to be an important factor.

FCA and the Equity Release Council

The Financial Conduct Authority now regulates all mortgage based equity release schemes. However, at the moment, Home Reversion schemes are not regulated. In addition to FCA regulation the most respected equity release providers sign up to the Equity Release Council's Statement of Principles. It is strongly advisable to seek expert financial and legal advice before entering into any equity release scheme.

Legal Advice

Trust in your advisers is crucial to all aspects of law but it is particularly pertinent when dealing with the delicate issues relating to property and finance. Equity Release specialist lawyers will draw on vast experience to guide you the process to ensure that you know exactly what is happening at every step. This advice will be entirely independent of any financial institutions, geared solely to ensuring that the decision you reach is in your own personal interests and suits your own individual situation.

Your relatives

You may wish to take into account the affect upon your estate of entering into such a scheme, as it will primarily result in reducing the estates value left to your heirs/beneficiaries. It is recommended that you tell your beneficiaries (the people that you intend to leave money to in your will) about your equity release. Of course though, you do not have to. It is entirely up to you.

Be Prepared

Like most things in life, following good advice and representation, clients are better informed and protected. This relieves stress during the actual transaction and places them in a preferred position in the future.

All equity release conveyancing will be performed by Taylor Rose MW Limited. Taylor Rose MW Limited is a firm of solicitors authorised and regulated by the Solicitors regulation Authority, SRA no 623604.