Equity Release Schemes

The sharp rise in property prices over recent years has led to a high level of equity, which is the difference between the value of a property and any secured mortgage held against it. That equity can be released in a number of ways, i.e. re-mortgaging, selling to rent or downsize. Another alternative is an Equity Release Scheme.

What is an Equity Release Scheme?

This is a commercial product that is designed to provide capital or income to a home owner who can also continue to live in the property. This can be particularly helpful when someone needs to realise capital or income due to pension failure, failing investment returns or the costs of supporting family members.

• Lifetime Mortgage Scheme

Under this type of Scheme, the property owner borrows against the value of the property but the loan does not have to be repaid until the owner either vacates the property, moves into long term care or dies.

• Home Reversion Scheme

In this instance, the owner sells all or part of the property to a Reversion company but has the right to remain living in the home for life as a tenant paying a nominal rent. Any subsequent increase in value of property or part sold, will be retained by the Reversion company.

Both of the above Schemes are regulated by the Financial Services Authority.

How can we help you with Equity Release Schemes?

We will advise and assist you as to the nature, effect and implications of entering into the Equity Release Lifetime Mortgage and/or the Lender's security documents. In addition, we can assist you with the following:

• Providing your Lender with Title and other documentation as required.
• Rectifying Title defects which could otherwise affect the property being good security.
• Advising the Lender of any change in circumstances which may affect the Lifetime Mortgage prior to completion.
• Assisting with requisitions raised by HM Land Registry and HM Revenue & Customs.
• Completing and signing the Solicitor's Certificate, when required.
• Redeeming secured lending.
• Providing you with the Land Registry Title Information Document when registration of the Lender's Charge has been completed.

For more information and a no obligation quotation, please do not hesitate to give us a call.