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Equity Release - An Insight

Are you a homeowner aged over 55 years, with equity in your property and approaching that time in your life when some extra tax-free cash could be of benefit to you to do whatever you want? Whether it be for a new car, repairs to your property, or just to help with the costs of living, then equity release could be an option worth considering. The amount that can be released is dependent upon the value of the property and monies can be drawn down in one payment or in a series of payments.

You can tap into the value of your property without the need to sell up and move out. You should take advice both financially from an adviser regulated by the Financial Conduct Authority and legally as you may not be aware that for example extracting funds from your property can impact on your eligibility to the state benefits which you may be entitled to. It will also affect the value of your estate when you die. The equity release debt will usually be repaid when you die or sell the property on going in to long-term care and interest works on a roll-up basis so no repayments are made during the life of the mortgage. It is always a good idea to involve family members in the decision making process.

In a market which is increasing there are safeguards in place for customers. All equity release plans contain a ‘negative equity’ guarantee so that the amount of the equity release debt repayable will never be more than the value of the property.

Equity release is a complex area.  Lanyon Bowdler are on several equity lender’s panels for the major providers in the area we cover as we are recognised for our expertise and local knowledge.

For advice I can be contacted on 01952 211044; or e-mail debbie.stott@lblaw.co.uk