Equity release is a popular option for the over 55s to release equity from their home. There are various reasons people may wish to unlock cash by taking out an equity release such as:
- Carrying out improvements to property;
- Providing financial help to family members (the old “bank of mum and dad”);
- Consolidating debts; or
- Taking early retirement.
Equity release is a financial product where a property owner can keep the use of a property which has capital value (i.e. there’s equity in it), whilst obtaining a lump sum or a steady stream of income from a lender. The property is used as security, with the loan to be repaid on death of the borrower for example.
Independent legal advice is a requirement of the equity release process, and our role as lawyers is to ensure that you understand the long-term nature of an equity release contract and proceed with full knowledge of the risks and rewards, as well as the legal obligations of the plan.
Our process usually involves, an initial chat, opening your file, receiving the mortgage offer, a written mortgage report to you, and a signing meeting as we are required to have a physical meeting to witness the signing of the mortgage papers. Whilst this can seem a faff, it is to protect the lender’s interests as much as yours.
Equity release is a specialist area and the property lawyers at Scott Bailey LLP in Lymington, Hampshire, are experienced in dealing with clients entering into equity release lifetime mortgages. We can provide comprehensive written advice and face to face appointments so that clients fully understand the products they are entering into, and the risks as well as the benefits of a chosen product.
If you would like to find out more information about handling the legal side of your equity release, please contact Daniel Ratcliff on 01590 676933 or email [email protected].