There are equity release schemes with commercial providers. One type involves the sale of all or a share of your home to a specialist company, but you will have a right of occupation for your lifetime. If you die or move out of the home (e.g. into residential care) then the property is sold. Another type involves you taking out a loan secured on the property but only to be repaid when you die or move out of the home.
If you are entering into an equity release scheme with a commercial provider then they will usually insist that you take independent legal advice on the scheme.
There are, however, other ways in which equity can be released from your home. These might include: trading down to a smaller property, selling the property and going to live with a family member or renting a property, re-mortgaging the property, or, if possible, selling part of the property such as a garden.
We can consider the scheme with you and provide advice and assistance on the terms of the scheme. We could also assist with any conveyancing aspects should that be required.
We can look at issues that may arise including maintenance, repair and insurance, occupiers, moving, existing mortgages and loans, taxation implications and whether the equity released will affect your entitlement to means tested benefits.
Aside from the schemes with commercial providers, we can advise upon the proposals to release equity with regard to the documentation required and issues such as capital gains tax and inheritance tax.
We have a dedicated team of lawyers specialising in estate and tax planning. Raising equity from your home should be considered carefully and it is vital that specialist advice is obtained.
If you raise funds in return for giving away a share of your home (the equity) then you need to be sure that you understand the nature and effect of the proposals and how it will impact on the ownership of your home.