First4Lawyers can help you with equity release

If you need to free up some money to make your life easier, equity release can be a good way to improve your financial circumstances. And it’s growing in popularity, according to the Equity Release Council, in 2022 equity release lending was worth £6.2 billion - almost double that of 2017.

Household budgets have reduced for many people during the last 10 years, and it has become harder to depend on savings and pensions when extra money is required.

If you are a homeowner, equity release could be a way to release precious extra funds without having to sell the property.

Speaking to the team at First4Lawyers will mean experienced solicitors could help you take the best course of action.

What is equity release?

Equity release is a process that allows you to obtain a lump sum of money or a stream of income from the property that you own, which must be repaid at a later stage. That could be when you pass away or sell your home.

Schemes are available to people over the age of 55, but most equity release products are targeted at homeowners over the age of 60 who own their property outright or have very little left to pay on their mortgage, with no dependents living at the property.

Having your application for equity release accepted will depend on the condition of your property.

Before applying for equity release, you may wish to assess whether there are other investments or assets that might be better ways to improve your financial situation, or if you might be entitled to benefits such as pension credit, council tax reduction or attendance allowance.

The main consideration to make when assessing the benefits of equity release is whether the additional money you gain access to through the release is more valuable to you now, or later in life.

The value in your property might seem to be sitting idle at the moment, and you might feel it would be better to have access to that equity now and set up a scheme through which you will pay back that money.

However, if the equity in your property is likely to be inherited by your children or relatives in future, you may wish to consult with them before entering into an equity release scheme.

Your beneficiaries may be able to suggest alternative ways of easing your financial situation, without having to embark upon the equity release process.

What are the costs involved in equity release?

Depending on the provider whose equity release product you opt for, the costs and fees involved in the process will vary.

The equity release specialists at First4Lawyers have the expertise to advise you on a broad range of equity release products and their respective benefits and inherent costs in terms of the law.

The costs involved in equity release usually include completion, arrangement or application fees to cover administration costs, as well as valuation fees that will increase for more valuable properties.

If you want to pay off your mortgage early in order to access equity release, there may be a repayment charge, and any legal work you instruct solicitors to carry out on your property may incur fees as well.

I am interested in releasing some equity from my property, what should I do?

It is recommended you seek assistance from a specialist lawyer before beginning the process of equity release.

While there are various sources of information and assistance on this issue, you need to ensure that the advice you receive is full, balanced, and independent – not to mention, your choice keeps within the bounds of the law.

Contact us today and speak to one of First4Lawyers’ equity release specialists, who have a deep knowledge of the best equity release products on the market.