Making sure equity release is right for you
Equity release can be a complex issue and is not something anyone should rush into. We advise anyone considering taking out an equity release plan to seek both specialist financial and legal advice.
Investigate all your available options
As a lawyer we are unable to offer you any financial advice; this is the role of your financial adviser or provider. They will be able to fully explain all of the options available so you can be confident equity release is the right decision for you.
We can refer you to a specialist equity release financial adviser if you do not already have one. We recommend the following companies.
Discuss your plans with your loved ones
We encourage you to discuss your equity release plans with your family as releasing funds from your home could impact on their inheritance. Involving them from the very beginning will help avoid any misunderstanding and removes the “element of surprise”.
An equity release plan could affect your current or future entitlement to State or other benefits so before you commit to an equity release plan you need to check if you would be affected. You can find out this information at the Department of Work and Pensions, the Citizen’s Advice Bureau or your local authority.
There are two main types of equity release plans - Lifetime Mortgage and Home Reversion Plans. It is the responsibility of your financial adviser to explain both schemes to help you understand which one is best suits your situation.
Equity release schemes only expire when you pass away or if you permanently leave your property (e.g. entering permanent residential care). Because of this there is usually an exit penalty if you wish to quit your plan early.
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