If you wish to free up money that is tied up in a property you own, you may be considering an equity release mortgage. As its name suggests, ‘equity’, using part of the value of your home, is ‘released’ to you as a cash payment – either in the form of a lump sum or as a regular income.
It’s important to be aware that there are other ways to release some of the equity tied up in your property, such as downsizing and borrowing from family against the security of your home. It is best to explore all available options first to ensure that equity release is the right choice for you.
The two main types of equity release are a Lifetime mortgage, where money is borrowed against the value of your home, and a Home reversion plan, where money is released by selling all or part of your home while you continue to live in it.
There are advantages and disadvantages to both types of scheme so it is important to seek independent financial and legal advice to help you decide which option is right for your personal circumstances.
By using a specialist independent legal firm with experience of equity release – such as Tennant Mickleburgh Solicitors – you can be assured that your interests are properly looked after.
We are not able to offer financial advice, regarding the suitability of a particular equity release scheme. If you should need advice, we are happy to put you in touch with a trusted, local, independent financial advisor.
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