Have you thought about an Equity Release Scheme?
A growing number of people are considering an equity release scheme, particularly a lifetime mortgage, to provide a cash lump sum.
Such useful lump sum can then be used during your lifetime for various reasons. ‘Equity’ is that share of the value of your home which is unaffected by debt such as a mortgage. Therefore, if your home is valued at £200,000 and you no longer have a mortgage or any debt secured against your property, you will have £200,000 equity.
It is possible to “release” some of that equity to you, as either a lump sum or as instalments, to suit your needs. Generally, the lender recovers the sum, plus interest, from the sale proceeds on the future sale of the property.
However, there are a number of issues of which you should be advised in detail and that is why it is crucial to instruct a Solicitor and Financial Adviser with the appropriate experience and qualifications.
They will be able to advise you of all the implications for you and your family, including the importance of discussing your plans with the beneficiaries of your Will, any possible effect on your benefits, inheritance tax and income tax implications and your occupation rights.
If you think an equity release scheme may be right for you, we can recommend local Financial Advisers to help you.
If you require legal advice in relation to the proposed equity release scheme, please get in touch by calling 01752 401515.