Equity Release

Equity release can seem daunting and confusing, especially when it comes to the legal side of things – this is where we can help you.

Not sure what you need?

Request a callback at a time that is convenient to you, or call us 24/7 on 0808 159 9899

What is equity release?

Equity release is a way of freeing up some of the money that’s tied up in your home, without having to sell the property. It’s an increasingly popular option for people who are looking to raise some extra money later in life.

In 2022, equity release lending was worth £6.2 billion, according to the Equity Release Council – almost double what it was worth in 2017.

But releasing equity is not a decision to be taken lightly. This is why we would always suggest speaking to a specialist before doing anything else. Our property and conveyancing solicitors are experienced in this area, and can advise you of the best course of action to take.

Can I release equity from my house?

Equity release schemes are available to anyone over the age of 55. But most equity release products are targeted at homeowners older than 60, who own their property outright or have very little left to pay on the mortgage.

Having your application for equity release accepted will depend on the condition and value of your property, too. So this is something that should be considered before you decide to go down the equity release route.

You might also want to consider whether there are other investments or assets you could sell that might be a better way for you to improve your financial situation. Think about whether the additional money you’ll gain through equity release is more valuable to you now, or later in life.

If you release equity from your home now, you might not be able to rely on the value of your property for any additional funds you might need in the future. For example, you might find yourself having to cover the cost of care fees.

We would also suggest speaking with your children or anyone who is likely to inherit the equity in your home. They might even have ideas for other ways you could ease your financial situation, without having to embark upon the equity release process.

If you’ve taken these factors into account and still want to go ahead, our solicitors can help you start the process.

Why choose First4Lawyers?

Expert legal services for your individual needs - whether it's for home, family or work.

Free initial case review
Discuss - Orange - Small

Our fully trained legal advisors are happy to offer initial guidance and advice for free

Fixed price consultation
NWNF - Orange - Small

Phone or face-to-face meeting with a legal expert from just £149

No pressure
Manage - Orange - Small

We offer advice with no obligation.  We never cold-call or apply pressure to our customers

Get in Touch

How to release equity from your home

There are two main ways to release equity from your home, and they work differently:

  • Lifetime mortgage
    This type of equity release allows you to take a loan out against your property while you keep ownership of it. You might even be able to ringfence some of the property’s value for inheritance purposes.

With a lifetime mortgage, you can either make regular repayments or let the interest build up. If the loan hasn’t been paid off when the last occupant of the house dies, it will be paid back through the sale of the property.

  • Home reversion
    This is a less popular option, and involves you selling part or all of your home in return for a lump sum of money or regular payments. You’ll still be able to stay in your property, but you’ll need to agree to insure and maintain it to a good standard.

You can reserve some of the value of the property on a home reversion loan, too. But you should bear in mind that when you die, your chosen beneficiaries will need to share the proceeds of your house sale with the reversion company.

What are the costs involved in equity release?

Depending on the provider you use for taking equity out of your home, the costs and fees involved will vary. But generally, they will involve:

  • An arrangement fee
    If you’re using a lifetime mortgage, your provider might charge you an arrangement fee to cover the cost of setting this up.
  • A valuation fee
    Some lenders might charge you for the valuation of your home, which will need to be carried out to determine how much equity you can release from your property.
  • Advice fees
    Your provider might charge you a fixed fee for the advice they provide on their products. But others will charge a percentage of the funds you release from your property.

You’ll also need to consider legal fees if you’re thinking about releasing equity. These fees typically range between £650 and £1,000. But this can vary depending on the value and complexity of your property.

Our solicitors will be upfront with you about their fees from the beginning. So there will be no unexpected costs further down the line.

I’d like to release equity from my property – what should I do?

If you’re thinking about releasing equity from your property, the first thing you should do is consult a specialist solicitor.

While there are various sources of information online about equity release, you’ll need to ensure the advice you receive is fully balanced and independent. Our solicitors will work with you closely and provide advice that’s tailored to your individual circumstances.

To find out how we could help you find the right legal representation, give us a call today. Or start your enquiry online.

Get in touch today - we can help with your claim 08005677866

How to guides

Learn about this area of law and what you need to know:

Customers rate us 'excellent'

We have a five star score from thousands of reviews on Trustpilot

Read reviews

Holly was amazing, her attentiveness, understanding and her general customer care was outstanding. Made me feel very comfortable speaking to her. I could not recommend a better company to speak to and with such amazing staff.

Miss Emma J

I was dealt with the most kind and caring manner by Rebeka. Also very efficient by explaining everything I had to know and connecting me to a solicitors who would deal with my claim. Thank you!

Mrs A Hill

Nice staff, very helpful and very easy to deal with. The initial part only took a few minutes. Staff also very knowledgeable and know what they are talking about.

Mr Richardson

Spoke with a lovely advisor called Chelsea who was great. She listened to everything that I said and gave brilliant advice. Her customer service was brilliant, she was very polite and gave me all the information about what are the next steps.

Mr N Dean

Get in touch today to discuss your requirements 08005677866
X

It seems you are using an outdated browser.

This will impair your browsing experience around the web. Please visit one of the links below to update to a modern browser then re-open the site with the new browser.

Thank you


logo

Can't find what you are looking for?

We are open as normal during the Coronavirus lockdown and are able to help with all your legal needs.

Call us free of charge

0800 567 7866

Request a Callback

Continue browsing