You might have seen adverts lately, or received a flyer through your door, about Equity Release. It is becoming a very popular way to release funds to achieve the things you want do, but it’s not always clear what it actually involves. Equity release gives you the opportunity to release funds from your property whilst continuing to live there.
The most common type of equity release plan is a lifetime mortgage. As the name suggests, this means taking out a loan based on the value of your home. The loan is secured on your home, but there are usually no monthly repayments to make (any interest due on the loan rolls up each year). The loan is repaid when your home is finally sold (usually when you move into long term residential care or after your death). Clients have used this method to carry out home improvements, treat family to longed for gifts, and to travel. It can give you the opportunity to do things you wouldn’t otherwise be able to afford to. However, it is a very serious undertaking and can significantly impact your financial future so should never be considered without thorough professional advice from both an independent financial advisor and a solicitor.
Releasing funds from your home could impact on your loved ones’ inheritance. The value of your estate will be reduced as the equity release loan will need to be repaid from your estate proceeds, usually by selling your home. Equity release can be expensive, so it is essential to consider other options such as downsizing or borrowing money from family members. Your financial adviser should outline and consider all of these options with you.
At Owen Kenny Solicitors, we understand the importance of safeguarding your future and your loved ones, so we take the time to meet with every equity release client, talk through any concerns and make sure you’re happy this is the right option for you.
If you would like to have a no obligation chat about Equity Release with one of our friendly solicitors please contact us today on (01243) 790532.
Testimonials from Equity Release clients:
‘It was so nice to meet you and know that I had such a friendly, efficient solicitor dealing with my Equity Release.’
‘Thank you for the efficient way you have dealt with everything for me. I have today paid the balance on my cruise which I couldn’t have done without the injection of funds!’