Releasing capital from your home
If you own your own home and want to remain living in it without compromising your standard of living, equity release may be the answer. Other reasons to access wealth locked up in your home might include wanting to give financial help to your family, needing to make changes to your property so you can carry on living there independently or to pay for medical care.
Equity release allows you to access some of the capital value in your property without having to sell it. The capital you take is eventually repaid from the sale proceeds of your property after your lifetime, or sooner, if you move out permanently during your lifetime.
Benefits of instructing Julie West Solicitors
We specialise in equity release so our solicitors have experience of many different types of equity release. We are certified members of the Equity Release Council.
We offer all our clients a face to face meeting to go through the legal documentation before you sign, so you understand what is involved and can make sure that it’s right for you.
Our offices are conveniently located out of town on a business park with adjacent free parking and step free access. Our meeting room is on the ground floor with adjoining wheelchair-accessible wc facilities.
How it works
Types of equity release plan
There are two main types of equity release plan:
Lifetime mortgage: this is where you retain the legal ownership of your home. You receive a lump sum which may be paid all at once or in monthly payments. The interest on the money is “rolled up” (compounded). The advance and interest are repaid from your estate either when you die or if you move into long term care. If you are part of a couple the repayment is deferred until the last remaining person living in the property either dies or moves into care, meaning that both you and your partner may live in your home for the rest of your lives.
Home reversion plan: here the equity release provider advances a tax-free cash sum in return for an interest in all or a part of your house. You will be entitled to remain living in your property during your lifetime under a lifetime lease. After your lifetime the property will be sold and the sale proceeds divided between the provider and your estate in proportion to their respective interests.
Your financial intermediary will consider your circumstances and recommend the equity release product that suits your needs. From there the case will progress in one of two ways. Either your equity release provider will do most of the legal work including preparing the documents ready for you to sign, in which case our role will be to check the paperwork on your behalf, to advise you and to explain any legal implications. Or your equity release provider will instruct us to deal with all the legal arrangements including preparing the documents, checking and certifying the title to your property, and dealing with completion and registration at land registry.
Title investigation
Title investigation means checking how your property is owned, making sure your property is fully marketable and that the equity release provider will acquire a legal interest in your property so the equity released and interest can be repaid from the eventual sale proceeds.
We may need to arrange for the property to be transferred into joint names, in the case of a married couple where the property is in the sole name of one of them, or for an existing mortgage to be redeemed as part of the completion arrangements. The buildings insurance arrangements will need to be checked. If the property is leasehold we will check to see if there are extra procedures that need to be observed.
Completion
Once the title investigation is complete and the papers are signed a completion date can be confirmed. On the completion day the mortgage over your property will be formally completed. The lump sum (equity) will be paid to you, or if you have opted to receive a monthly income, these will start.
Registration
The new mortgage (or lease, in the case of a home reversion plan) will be registered at Land Registry and we will provide you with copies of the updated title documents as soon as they are available.
Timescale
We expect your home equity release to complete within 3 months, usually sooner if there are no complications.
You can help us with this by dealing with issues and providing information promptly.
Time and again our clients tell us that they really appreciate our solicitors giving realistic timescales from the outset and open and honest updates on progress throughout. We always make sure you know exactly what is going on and will do our best to proactively achieve progress on your behalf.
The road ahead
We often find equity release provides an opportunity to take stock and to consider whether to make or review your wills, or to draw up lasting powers of attorney to appoint someone you trust to manage your affairs, health or welfare. Our solicitors are highly qualified, and have a wealth of experience. They will sit down with you and consider your options. They will ensure that any arrangements you choose to put in place are tailored to your particular circumstances and completed on time.
Cost
Our fees are a realistic price for doing a proper job. With legal work it tends to be the case that you get what you pay for. Your property is likely to be one of, if not the most, valuable asset you own. We would never recommend you to skimp on legal costs.
Fee list
Included in our fees
All retainers include:
A review of your Home Equity Release proposal.
A meeting to talk through all the issues unique to your family and circumstances.
Advice from a specialist solicitor tailored to your needs and delivered in a friendly and straightforward way.
A written report that explains exactly how your home equity release plan works.
Checking of final signature copies of all documents and witnessing service.
Electronic copy of the documents for your records.
Equity Release Council safeguards
Important safeguards, such as the no negative equity pledge and the right to transfer your home equity release plan to another property should you decide to move, are championed and promoted by the Equity Release Council as part of responsible lending.
Our firm is an accredited member of the Equity Release Council. As such, we agree to the Council’s principles and rules. Most importantly this means that we will put your best interests first, treat our clients fairly and act at all times in utmost good faith.
As later life lending is growing in popularity an increasingly flexible range of equity release products is becoming available. A specialist property solicitor will be able to explain the legal rights and obligations you are taking on.
We are completely independent of all equity release product providers, financial intermediaries and financial advisors. Unlike some conveyancers, we do not pay money to any organizations in the hope of securing instructions. We are completely independent, your interests come first. This is why it makes sense to choose Julie West Solicitors to carry out your legal work.