Equity release involves converting the equity (i.e. wealth) you have tied up in your property into a lump sum payment or regular income stream. This money can be used for any purpose – renovations, dream holiday or assisting family members financially. Equity release is only available to property owners over 55 years old and can play a crucial role in retirement planning. Your property must have a value in excess of £50,000.00.
The ‘equity’ is calculated by looking at the value of your property less any remaining mortgage. There is no tax to pay on the money released.
The most common type of scheme is the Lifetime Mortgage. This enables you to release a lump sum from the value of your property, whilst still retaining 100% ownership. There are not normally any monthly repayments to worry about. The amount released (plus interest) paid out of your estate when you pass away or if you have to move into long term care.
Equity release is a long term and serious commitment which has implications for both you and potentially your family members.
The first step should always be to speak with a financial adviser who is qualified and knowledgeable in equity release. The advisor will assess your position and advise on the suitably of equity release, the differing types available and suggest a provider/lender. We would always suggest that the provider is a member of the Equity Release Council. You can then make an informed decision as to whether equity release is right for you.
If you decide to proceed you will then need to appoint an independent lawyer with experience in dealing with equity release transactions. At Wollens we have help hundreds of clients through the equity release process. We understand the mechanics of that process and always aim to provide an efficient and seamless service. Our goal is ensure you know the legal implications of equity release whilst securing the release of capital as quickly as we can
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