HomePlus – Helping you understand Equity Release

At HomePlus we specialise in giving assistance to older home owners looking to release equity from their homes

Our legal experts are here to make sure that your equity release goes as smoothly and swiftly as possible. We know that you want funds released to you as quickly as possible and we will try to arrange for the cash to be sent to you within 4 weeks of the equity release documentation being issued.

Because we are specialist solicitors we will guide you through your equity release and make sure that you know exactly what is happening at every step.

What is equity release?

- Equity Release is a way of turning some of the value of your home into cash.
- It is available to people of pensionable age.
- Once the money is released you can use it at you choose.
- You keep the right to live in your home for the rest of your life.

There are basically 3 types of equity release schemes.

Lifetime mortgage schemes: With these schemes you take out a loan based on the value of your home. The loan is secured against your home but you do not have to make any monthly repayments. Instead the interest is added to the loan every year. The loan is repaid once your home is sold either when you die or move into long term residential care.

Home Reversion Schemes: With these schemes you sell either all of your property or a percentage of it to the equity release company. Again you are guaranteed the right to live there for the rest of your life. The property is sold when you die or move into long term residential care. At that time the equity release company receives a share of the proceeds in proportion to the amount of the property you sold to them

Home Income Plans: This type of scheme is a bit like the lifetime mortgage scheme but the money from the loan purchases you an annuity that gives you a regular guaranteed income.

faqs

Who helps me choose the equity scheme that is right for me?

A specialist independent financial advisor. At HomePlus we know a number of specialists and could put you in touch with someone local to you.

What will Home Plus do for me?

Our job will be to explain the equity release paperwork to you, send necessary paperwork from your deeds to the equity release provider and order the equity release money from the provider.

Are Equity Release schemes regulated?

The Financial Services Authority now regulates all mortgage based equity release schemes (Lifetime Mortgages and Home Income Plans). At the moment Home Reversion schemes are not regulated. However in addition to FSA regulation the most respected equity release providers sign up to the SHIP (Safe Home Income Plan) code of practice.

How much money will I get?

It depends on the type of scheme. Generally the older you are the more money you will receive. Men also receive more than women of the same age (due to life expectancy) and a single person receives more than a couple.

Can I live in my house for the rest of my life?

Yes. All reputable schemes should guarantee this for you and we will check this as part of the work we do for you at HomePlus.

Can I get more money in the future?

This will depend on the scheme. Again we will check this for you at HomePlus and let you know.

What happens to the house when I die or move into residential care?

These are the trigger points which will lead to the sale of your property and payment to the equity release provider. However if you are a couple then it is important to note that sale of the house will only take place when the second of you dies or moves into long term care.

Should I tell my relatives?

It is recommended that you tell your beneficiaries (the people that you intend to leave money to in your will) about your equity release. Regardless of the type of equity release scheme, your estate will be reduced by taking out an equity release and it is a good idea to tell your family about this. Of course you do not have to. It is entirely up to you.

I am on benefits. Will these be affected by taking out Equity Release?

They might be. Pension credit and council tax benefits for example may be affected by the amount of money that you have in the bank. It is important to check this with the benefits agency and make sure that this does not affect your decision on equity release.

What are the alternatives?

You should consider all of the alternatives before deciding on equity release. These are the kind of questions that you need to ask:

Are you getting all your welfare benefits?
Have you considered downsizing to a smaller home or sheltered accommodation?
Do you have any nest eggs, premium bonds or savings that may help you out?

E-mail your equity release queries direct to our team smr@llw.co.uk
Telephone the team direct 0151 737 5607 or 0151 737 5604
Fax the team direct 0151 343 5817

Equity Release Brochure