Equity release solicitors have seen a sharp rise in enquiries about equity release. That is not surprising when many are concerned about the cost-of-living crisis and are looking at equity release to release cash tied up in their home.
What is equity release?
Equity release is a loan secured against your home. You do not pay monthly interest and capital loan repayments with most lifetime mortgages. Instead, the loan and accumulated interest are repaid on the homeowner’s death or when the owner sells their property if they need long term care.
Why use equity release?
Equity release can either provide a lump-sum payment or a cash reserve to draw down when you need it, whether to pay the gas bill or fund a world cruise.
It is important to take the time to understand what is involved in equity release and to ask all your questions of your equity release conveyancing solicitor . It is also important to talk to your family about your equity release plans.
Will reviews and equity release
Your Will should be reviewed regularly to make sure it continues to reflect your wishes. This is especially important when there is a significant change in personal or financial circumstances, such as an equity release mortgage.
Equity release and Lasting Powers of Attorney
It is important to consider putting a Lasting Power of Attorney (LPA) in place if you are contemplating equity release. The purpose of an LPA is to enable your attorney to manage your property and financial affairs if you lose the capacity to do so. As equity release normally has to be repaid if you move into long term care, an LPA is needed as it gives your attorney the authority to sell your property. A Will solicitor can prepare an LPA for you at the same time as reviewing your Will.
Speak to our Bournemouth-based Wills Solicitors today
Solomons Solicitors can help with equity release legal advice as well as providing Will, lasting power of attorney and estate planning support so that you understand your options and you have the legal paperwork you need should you choose to proceed with equity release.