Equity release is a common method for property owners who are looking to obtain a lump sum of money or a steady stream of income. The process can be daunting, but our equity release solicitors in Wiltshire aim to make it simple.
Equity release is a financial arrangement in which a property owner decides to access their property’s value to receive cash during their retirement.
It’s a financial scheme which is available to property owners aged over 55 years old. Most equity release products are aimed at homeowners over 60. The reason for this is a 60-year-old is more likely to own their property outright or have nearly paid the mortgage.
If you’re a homeowner and you’re considering equity release to free some extra funds for yourself or a family member, then do speak with our solicitors.
Pension losses can occur. Whether you have encountered an unexpected expense, or you wish to invest this money elsewhere, then an equity release could be a great solution. It’s a great way to tap into the funds you’ve accrued in your property investment and receive money in your bank account.
Although it does seem like an easy solution, there are key aspects of equity release which everyone needs to know before they commit. Our team of equity release solicitors will be able to guide you into making a decision to best suit you in the present and future.
There are two main equity release schemes available.
A lifetime mortgage is a popular type of equity release. It’s a long-term loan that allows you to borrow a proportion of your home’s value. The funds you can borrow will depend on your age and the value of your property.
In terms of repayments, the mortgage differs to a regular mortgage. You will not have to make any repayments before the end of the plan.
You will need to pay the interest and loan in full. It will need to be paid when you die or when you go into long-term care. It can be paid by deducting the amount from the sale of the property.
A home reversion scheme is different in the way that you will be selling a share of your property to a provider. They will purchase the share for less than the market value. You’ll become a co-owner, but you will still be able to continue living in your property for the rest of your life.
The provider will get the same share whatever your home sells for. This will happen when the time arrives, most commonly when you die or move into long-term care.
Even if you’re sure it’s the right decision, we recommend that you seek professional advice before you begin the process of equity release.
If you would like advice on equity release, then please get in contact with our equity release solicitors in Wiltshire today!
Middletons Solicitors have a reputation for excellence with offices based in Warminster, Andover and Stockbridge. With more than 50 years’ experience delivering comprehensive legal services, our team of legal experts provides the highest standard of advice and service.