How does Equity Release work?

When the television adverts come on there is often someone talking about equity release. Whilst cost of living pressures may be making you think that equity release is right for you and your family it is still essential to check out what equity release means and how it works. At Solomons Solicitors, our team can help you with all your property, conveyancing, and lifetime mortgage needs.

Contact our team today to find out how we can help you. 

How equity release works

Equity release is a personal choice. You should not feel pressured into agreeing to release equity or proceed with equity release until you fully understand what it means for you and your family.

Some family members may encourage you to release equity to help them with a deposit to buy a property. Other family members may discourage you from taking out a lifetime mortgage because they believe it may affect their potential inheritance. The job of our specialist equity release solicitors is to make sure you are happy with your decision and that you have all the information and time you need to make the decision that is right for you. If you decide that equity release is the best option for you, our solicitors will ensure the equity release transaction proceeds as smoothly as possible.

Who owns the property if you release equity?

A major concern for those considering equity release is whether they will continue to own their own home. Equity release does not affect legal ownership. Your name remains on the title deeds to your property as the legal owner. However, the equity release company will have a mortgage secured against the property. Unlike other mortgages, you will not be expected to pay the capital off the mortgage, and in most equity release mortgages, the interest will accumulate so you do not have to repay mortgage interest to the mortgage company each month.

Do you need a new Will if you release equity?

If you decide to release equity from your house, you may want to review your Will to check that the provisions are still fair to all your family and loved ones. For example, you may have left your house to your partner in your Will, but you may want to consider if you should leave them a percentage share of your whole estate if the equity in your house has been reduced through equity release.

Our Will solicitors can review your Will for you and discuss any proposed changes so your Will takes into consideration your decision to release equity. We can also review your existing Lasting Power of Attorney or if you do not already have one, we can discuss whether now is the right time to sign a Lasting Power of Attorney.

Professional help with equity release

Your house is probably your biggest asset and one that you saved hard for. You may have spent years paying off the mortgage you took out when you bought the house and so you are a bit concerned about equity release or a lifetime mortgage whilst also appreciating that equity release gives you the available money to stay in your home without worrying over how you will pay the household bills.

As professional equity release solicitors, we can answer all your property and conveyancing questions about the legal aspects of equity release and guide you through the paperwork.  

Speak to our Bournemouth-based Equity Release 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.

For a free initial consultation, call us today on 01202 802 807 or use our online contact form.