Where conveyancing is concerned, we have extensive experience in this field and the work is carried out by dedicated qualified personnel. A special fast track department has been set up to deal with all emergency transactions where time is of the essence. We also specialise in Equity Release Schemes.
In accordance with the firms dedicated client care policy, proper guidance is given from the moment the client makes first contact to the conclusion of the matter. The information provided by way of personal written instructions and written procedural notes assist the client in moving home in the least stressful manner possible.
Buying a House?
Consider all the alternatives such as moving to a smaller home. Capital raised this way will cost you less in moving expenses than in equity release set-up charges and interest. If you do not wish to move, it is essential to discuss your plans with your family before proceeding with equity release. This will avoid any unnecessary family surprises later on and they may be able to suggest alternatives.
With more than 30 equity release schemes available it will be difficult to find the best deal yourself. Not only that, many of the schemes are available only through authorised intermediaries. Make sure that the Equity Release Company is a member of SHIP as this gives added protection. We can recommend an independent specialist to provide you with equity release advice.
Equity Release is certainly not a first option so choose your adviser carefully. Are they able to advise on entitlement to welfare benefits? Are they also conversant with all aspects of long-term care funding? Some of this may be relevant to you now or in the future. The wrong advice could cost you dearly. An adviser who specialises in all these areas will be able to explain all the relevant issues and achieve the best outcome.
Ask your adviser about equity release fees – and make sure you get value for money. Make sure your are made aware of any early repayment charges.
Borrow only as much as you intend to spend or give away. You will earn much less from cash left on deposit than the interest you will have to pay for borrowing it in the first place. It could also cut your entitlement to means-tested benefits. Kindly remember that inflation will erode over time the value of any capital raised.
You may alternatively wish to consider a drawdown plan that offers a cash reserve facility. Rather than just receiving a lump sum, you have the option to release your cash over time, as and when you need it. Because interest is only payable on the cash you have taken, these plans can often prove more cost effective.
When comparing lifetime mortgage interest rates always pay particular attention to the APR [annual percentage rate] and not just the headline rate. The difference can add up to 0.5% on the rate actually charged. This is due to the costs of setting up the arrangement and how interest itself is calculated. This can be daily, monthly or annually. The longer the period the better it is for the borrower. (The exact opposite is true for traditional repayment loans.)
Ask your adviser about continued support and advice. This could range from claiming welfare benefits, or care and support from the local authority, to mitigating inheritance tax. Advisers who specialise in elderly client advice will be in a better position to help than a traditional mortgage adviser, for example.
Make sure that you have understood the various features of equity release plans, and which are most important to you. If you’re planning to take out a lifetime mortgage, how do the set-up costs vary from one plan to the next? Do you plan to move in a few years time or is there a chance that you may wish to repay some or all of the loan at some stage in the future? Do you want to guarantee that some of your equity is protected so that it is passed on in your estate?
A good adviser should be able to talk through all of a plan’s features in a way that you can understand.
Make sure you use a solicitor who has specialist knowledge and training in this field. Rupert Wood & Son have been advising on equity release schemes for many years and have the necessary knowledge and training in this legal discipline.
Make sure you have a clear idea on your key goals when embarking on this path. Your personal priorities and views on the direction of house prices will materially influence whether a lifetime mortgage or home reversion scheme is right for you. Your equity release adviser should be able to guide you.
If you are aged 60 or over and own your own home then you are able to release equity from your property . You can normally borrow a percentage of the value. The loan is repaid on your death or the death of the survivor of joint owners or if the property is sold or if you go into care.
The interest charged is added to the loan and rolled up for as long as the loan is in existence. If property prices rise then the effect of the interest roll up is off-set by the increase in value of the property.