Five FAQs on equity release schemes
What are equity release schemes?
Anyone who owns their own property and has built up a level of equity could release that money by using an equity release scheme. The idea is that you sell your home to a third party (usually a company that specifically provides equity release schemes) that pays you a lump sum of money in exchange for the equity you own. It is vitally important to have the advice of a property solicitor before you enter into any equity release scheme agreement.
What types of equity release schemes are available?
Generally there are two types of equity release schemes you could use. The first is a lifetime mortgage and the second is a home revision plan. A property solicitor can help you assess your needs and match these to the right equity release scheme.
Is the equity release scheme market regulated?
Yes, as the Financial Services Authority (FSA) now regulates all types of equity release schemes. If you think you have been given the wrong advice about the equity release scheme you are under, contact a solicitor and the FSA for advice about the legal action you could take.
How do equity release schemes potentially affect inheritance?
It is possible that the amount of money you would be able to leave in your will could be substantially less than if you didn’t take out an equity release scheme. This is one of the main reasons why you should take legal advice from a property solicitor before you sign any agreement with an equity release scheme provider.
How important is it to take legal advice about equity release schemes?
Because you will be relinquishing some or most of the control over your property, and the complex nature of equity release schemes, it is critical to obtain the advice of a qualified solicitor with experience of the equity release scheme market. Never sign an agreement without full legal support.
If you would like to obtain legal advice on equity release schemes, Caven can put you in touch with a local property solicitor free of charge. So, if you have any questions or would like our help in finding local property solicitors please call us on 08001 221 2299 or complete the web-form above.
- Last Updated on 17/01/2013