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What is Equity Release and Why Should I Consider This?

When borrowing money against the value of your home, you need to ensure that you receive the best possible legal advice regarding the process which is involved. Our Team of Residential Conveyancing Lawyers here at Hodgkinsons can help you with this and our latest blog explores the process of releasing equity and how we can help you.

What is Equity Release and Why Should I Consider This?

Equity release is the process of releasing cash from the value of your property. Home owners often choose to release equity for a number of reasons, from wanting more money for their retirement to simply needing an additional source of income. A significant benefit of releasing equity is that you will have access to cash which would have otherwise been tied up in your home. Additional reasons for wishing to release equity may include:

  • To pay off an existing mortgage
  • To fund home improvements
  • To fund garden improvements

In order to release equity from your home you must be over the age of 55 years old. Cash can be withdrawn from your home in either a lump sum, in several smaller payments, or you can choose to opt for both. There are generally two options for releasing equity, and these come in the form of a ‘Lifetime Mortgage’ or a ‘Home Revision’.

There are many important factors to consider when contemplating an equity release. Our Lawyers have the expertise and knowledge of these factors to provide you with the advice you need to make the best decision for you. Releasing equity is a major decision, and you should not make decisions without seeking professional advice first. Our Lawyers will always be transparent with you by explaining the pros, cons and risks involved so that you can make an informed decision. They will always ensure that you are aware of any implications involved with releasing equity before you choose to do so.

Our Lawyers will advise on whether an equity release is suitable for you or not. If it is deemed suitable, they can help you to identify the most appropriate option for you depending on your circumstances. Once you have received a formal offer for your equity release from your Lender, our Lawyers will run ID Checks and ensure that the paperwork for your property is in order. This may include checking title deeds and ensuring that you have the required insurance in place. If you have chosen to release equity in order to pay off an existing mortgage, your Lawyer will handle this transaction for you. If you have chosen to release equity to access cash, your Lawyer will liaise with your Lender to agree on a completion date and organise for the funds to be transferred into your account.

Unfortunately, there are many misconceptions surrounding equity releases. Many people assume that an equity release will leave their loved ones in debt. In fact, if you have taken out an equity release, you will never owe more than the value of your home. A second misconception is that if you release equity, you will no longer own your home, however, with a ‘Lifetime Mortgage’ you will always remain the property owner. If you have concerns such as this, our Lawyers will provide you with the answers you need to give you peace of mind.

If you are thinking about releasing money from your property, our Team of Residential Conveyancers can give you the expert legal advice you need. Our Team have many years of experience in assisting Clients who are considering an equity release plan. To get in touch with a member of the Team call Hodgkinsons Solicitors, Skegness, on 01754 897150 or submit a contact form and a member of the Team will be in touch. Wherever you are based throughout the East Midlands and rural Lincolnshire to include Skegness, Boston, Sleaford, Louth, Grimsby and Lincolnshire, we can help you.