What is Equity Release?
Equity release allows homeowners over 55 to extract cash from the value of their property by taking out a secured loan against their home.
You pay no immediate interest on the money you borrow. Instead, the interest is rolled up at a fixed rate, agreed at the beginning of the loan. Then the loan is paid in full when your property is sold.
Reasons why people choose to release equity include:
- It's tax-free
- You can still live in your property
- You can use the lump-sum amount to improve the home, fund retirement or help your children to buy their first house.
How Can Our Conveyancing Solicitors Help?
If you are considering releasing some of the equity in your home, please book an appointment and we will be happy to discuss your options. We can meet you with your financial adviser if you wish, to make sure the advice is integrated. If you do not already have a financial adviser, we would be happy to recommend a specialist, independent adviser who can discuss your circumstances in detail.
Reversion Schemes
These equity release schemes involve you selling all or part of your home to a Reversion Company. In return, you receive a lump sum or a monthly income. You and your partner can stay in the home, usually rent free, for the rest of your lives. When the property is eventually sold (usually on the 2nd death), the Reversion Company receives a % of the sale proceeds equal to the % of the property that they bought from you.
Lifetime Mortgage Equity Release Schemes
This heading covers a variety of different equity release mortgage schemes, all of which involve you borrowing money secured on the value of your home. Again, you can receive either a lump sum or a monthly income. You continue to own all of your home and the loan is repaid to the lender when your home is sold. You can choose whether to make interest payments or whether the interest is “rolled up” and paid back when the property is sold.
Why choose Banner Jones Conveyancing Solicitors?
When considering taking a loan against your home, it is critical to have the best expert advice. With a wealth of experience and a team of dedicated specialists, you can rest assured that Banner Jones can help.
As a Leading Legal 500 UK law firm, we've helped thousands of people in Sheffield, Chesterfield and Mansfield and across England and Wales with their conveyancing needs.
For a friendly, personal service contact our property solicitors on
How to Avoid Property Fraud
We know that moving house is often a very busy and stressful time. This may leave you more susceptible to falling victim to property fraud. This guide outlines useful advice on what you can do to help protect yourself.
Thinking of turning your home into an Airbnb?
The restrictions on overseas travel has seen a race for UK holiday accommodation. Where property owners look to make money from ‘staycations’ by offering their homes on sharing platforms such as Airbnb, the ease of letting does not take away the responsibility to understand and keep up with relevant rules and regulations.
Is Downsizing Right For you?
There are several reasons why downsizing your home may become a serious consideration for you in the future.
Is Equity Release Right For You?
To find out whether equity release is really for you, we have developed the following article outlining key information.