Equity Release - The Legal Side
| Published: 21st July 2008 22:40 |
Deciding whether equity release is the right thing for you is a big decision. It is a decision which could affect all your family.
There are a number of issues you should consider first.
- If you are struggling to pay the bills obtain advice from the Citizen's Advice Bureau on what benefits you could claim.
- If you are currently claiming benefits check what effect having more available cash will have on those benefits. You may find your benefits stop if you release equity from your house
- Speak to your family. This concerns them as well and it can cause problems in families if they only find out about the equity release on the death of the person. They may be able to suggest other options. In this day and age of many people on the look out for investment properties a member of your family may be willing to buy the house and grant you a tenancy for life. However, this should only be entered into with legal advice from an expert property lawyer
- Get legal advice from the outset. An expert property lawyer may be able to suggest options particular to your circumstances and can work with you throughout the matter and guide you through the equity release process. Check that your legal adviser is either a Licensed Conveyancer or a Solicitor specialising in property law.
How to apply for equity release
Equity release is a specialist area and you must get advice from a Financial Advisor who is experienced in this field.
There are a number of products, which your Financial Advisor will discuss with you to help you find the right one for you.
The Legal Process
Once you have found the right product and an offer is issued your legal adviser will check the requirements of the Lender and advise you on the process required, the likely timescale and the likely costs.
It is essential that your legal adviser has experience in this field as there are many issues which must be discussed with you so you know exactly what you are agreeing to.
Review your Wills
Many people think they do not have enough money to have to worry about Wills. In fact, the tighter your family budget the more important it is that you have wills so your family can access money as soon as possible should the worst happen.
If you do have a Will it should be reviewed every five years or when there are substantial changes to your finances. Taking equity release would amount to a substantial change and it is essential you have your Wills reviewed. Speak to your legal adviser at the outset to ensure this can be arranged during the equity release process so that everything is in place when the equity release is completed.
If your house is worth more than £250,000.00 you need to ensure your Will takes into account new rules on Inheritance Tax as old Inheritance Tax wills may no longer be applicable and are very expensive to administer on death leaving your family with even less inheritance.
Thanks to Susan Cartin of Cartin Lincoln Haynes for this article.
For more information and legal advice contact Susan Cartin, Licensed Conveyancer of Cartin Lincoln Haynes Property Lawyers on 01282 838391 or 07966497143 for a no obligation chat.
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