What Is Equity Release?
Equity release is a product that allows homeowners to release lump sums of equity/capital tied up in their property to supplement their income. Statistics have shown that equity release is popular particularly with retired people due to falling pension annuities/income and perhaps, low saving returns.
Preferred Equity Release Schemes
Whereas there are different schemes available in the market, however, popular ones are: Life Time Mortgages or Home Reversion Plan.
We strongly recommend to seek financial advice from an Independent Financial Advisor (IFA) when planning to embark on any equity release product. When you decide to proceed, ensure you get expert legal advice to check that the scheme you have opted for is in you best interest.
Be Safe – And MT UK
You can make yourself additionally safe by dealing only with providers that are members of SHIP (Safe Home Income Plans). This is a trade body set up by providers of equity release plans which has its own stringent code of conduct that is much tighter than the Financial Services Authority (FSA) regulations. SHIP members usually insist that you appoint your own solicitor to advise you independently on the loan conditions.
If you are considering equity release, it is really important that you receive expert legal and financial advice. Team MT UK Conveyancing Department can help you with handling the legal aspects of equity release and will make sure you understand all the terms and conditions. Also, Team MT UK (Conveyancing Department) shall spell out all the implications and other considerations for you.