Considering Equity Release? See a specialist Lawyer before proceeding.

Equity release mortgages are growing in popularity.

The Wikipedia definition states that an equity release mortgage is a means of retaining use of a home, while also obtaining a lump sum or a steady stream of income, using the value of the house.

The “catch” is that the income or capital provider must be repaid at a later stage, usually when the homeowner dies.

Kathryn Doogue, property specialist at Kirkham Legal, comments:

“Whilst each case depends entirely on its own circumstances, most equity release mortgages are taken out as they are a relatively easy way to obtain cash, whilst still allowing you to live in the house. Again, what a person uses the money raised for is up to them – some do it to reduce the size of their estate for IHT planning purposes, to help out their children now rather than waiting until they die, to fund their lifestyle in retirement (particularly if the person is short of pension provision either through lack of contributions or having taken a pension capital draw-down when the rules recently changed) or they have no other option as they need to raise funds to pay off existing debts, such as the original interest –only mortgage on the house which has now become payable upon the expiry of the mortgage term.”

Kathryn recently attended a specialist training course which highlighted the rules and regulations relating to such mortgages, and importantly, the areas of professional good practice required to properly carry out such work.

Kathryn adds “Before proceeding a person seeking to take out such a mortgage should get specialist advice from a lawyer who deals with both conveyancing and private client work, as this type of case transgresses both areas of law, as you are not only dealing with a property transaction but you should also be fully aware of the implications that such a mortgage will have on your estate and your beneficiaries when you eventually pass away. As such, a lawyer should explain to you all of the other options available, such as raising alternative finance or selling up and downsizing, and if you agree, ensure that your nearest and dearest know the consequences of such a mortgage, so that they do not get a nasty shock when ultimately dealing with your estate. We at Kirkham Legal, being Licensed Conveyancers, specialise in only these two types of work, so you can be assured of the best possible advice.

If you or your family have any queries about the Equity Release process, please do not hesitate to contact us on 0161 393 2299.