Equity Release is a way for those of us over 55 to release a capital sum from the property we own and live in without having to make any monthly payments.
The most common Equity Release plan is a type of mortgage but one where the interest is added to the debt and repaid when the Property is sold. Equity Release can be an expensive way to borrow money and is not for everyone by any means but for some it can be a useful option to consider when money is tight in later years. It can also sometimes be used as part of estate planning.
If you are thinking of Equity Release then you need the best advice from experts who understand the financial products. You must talk to a specialist financial advisor and find out as much as you can about your options, the costs and the available schemes. Many Equity Release plans are funded by the major insurance companies and you should always look for a plan that is SHIP Certified from a member of the Equity Release Council.
As well as the cost of a plan, you will want to consider whether it will have an effect on any benefits you receive or your tax position. The effect on your family of a plan is always an important consideration, although you should still do what is right for you, not what is right for their inheritance!
As well as the best financial advice, you need the best legal advice. Equity Release will have implications for your estate and it makes sense when considering Equity Release to also take time to review the extra help that we might all need in later life.
As your legal experts we will not be able to tell you whether or not a particular financial product is suitable for you, that is the role of your financial adviser. However we will ensure you receive the best legal advice about the risks, rewards and obligations attaching to an Equity Release plan, completely independently of your financial advisor and the plan funder, and we can provide tax and estate planning advice including advice on wills and powers of attorney.