Equity Release
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Are you looking for a way to unlock the potential of your home and enjoy retirement? Equity release with RG Law may be just what you need! This innovative financial solution allows people over 55 years old to unlock money from their property, giving them more options when it comes to living out their golden years. As an added bonus, this form of equity release also offers peace of mind with its secure legal framework.
Let’s take a closer look at how equity release with RG Law can help transform your life in retirement.
Brief History of the Equity Release Loan
The concept of releasing equity from one's property is nothing new; however, since gaining popularity in the early 2000s, there has been an ever-increasing demand for the product due to its many advantages. For starters, it enables homeowners to access funds which they would otherwise have had no access, or limited access to, through traditional means such as savings account withdrawals or mortgage refinances.
Furthermore, as long as certain conditions are met then interest rates typically remain relatively low - allowing borrowers greater flexibility than other forms of debt financing. Finally, opting for an equity release plan administered by RG Law ensures that all legal requirements are met – thus providing customers with increased protection against any possible issues further down the line.
What is Equity Release?
Equity release is a financial process by which homeowners can access the equity stored in their property. It allows them to borrow money on the value of their home and then use that money for whatever purpose they choose, such as paying off debts or making investments. Equity release can be an attractive option for people who are retired, have no dependents, or want to supplement their income without taking on more debt.
The most common type of equity release plan is known as a lifetime mortgage. This equity release provider involves taking out a loan secured against your home with interest added over time until you pass away or move into long-term care. The loan amount and any accumulated interest will need to be repaid when the house is sold after death or upon moving into long-term care.
Fortunately, the process of releasing equity has safeguards in place that make equity release safe and aim to protect homeowners. For instance, when considering an equity release plan with RG Law, we will always advise our clients on the risks involved as well as on their legal rights and responsibilities.
To sum up, here are some key points about safety when releasing equity:
• All providers must be authorised by the Financial Conduct Authority (FCA)
• You should only ever use a solicitor or regulated adviser who specialises in equity release products
• There may be implications for Inheritance Tax depending on individual circumstances
• Homeowners retain ownership of the property until death or moving into long-term care.
These measures help give peace of mind that releasing equity is safe and secure when working with experienced professionals like RG Law.
What Are The Two Types Of Equity Release Schemes?
When it comes to equity release, there are two main types of schemes available: lifetime mortgages and home reversion plans.
Here are some key points about these two equity release schemes:
• Lifetime mortgages allow homeowners to keep their property and access funds gradually;
• Home reversion plans provide immediate cash sums but relinquish ownership;
• Both offer tax-free transfers;
• Both provide peace of mind that borrowers can stay in their homes until death/long- term care;
• Borrowers must be aged 55+ years old to consider both options.
Each plan has its advantages and drawbacks depending on individual needs, so it’s important to seek advice from experts like RG Law before deciding whether releasing equity is right for you. Moving on, let's explore what happens during the process of releasing equity...
Process Of Releasing Equity
Releasing equity is a unique financial tool that can potentially unlock thousands of pounds in value from your property. In fact, according to research by the Equity Release Council, over £3 billion was released in 2019 alone!
The process of releasing equity typically begins with an initial consultation and assessment. During this stage, you will discuss your current situation and objectives with RG Law professionals who will assess whether or not releasing equity is right for you. If it is suitable, they’ll provide advice on what kind of plan would best meet your needs.
Once the details have been established, application forms must be completed and submitted along with any required documents. After all legal requirements are met, the funds can then be accessed and used as desired. Releasing equity should always involve seeking professional financial advice, from experienced advisors like those at RG Law - doing so increases the likelihood that you’ll make an informed decision that meets your long-term goals.
Moving forward, let's explore more about lifetime mortgages – one type of equity release mortgage scheme.
What Is A Lifetime Mortgage?
A lifetime mortgage is a type of equity release product that allows homeowners over the age of 55 to access cash from their property without having to move out. This option can be an attractive choice for those looking for funds to cover medical expenses, home improvements, or any other large expense.
When you take out a lifetime mortgage, a portion of your total housing wealth is released as a lump sum in exchange for regular payments throughout the duration of your loan. The amount of money you receive as part of this agreement depends on factors such as the value of your property and how much debt you already have secured against it.
It’s important to remember that while there are no monthly repayments involved with such mortgages, interest will accumulate and eat away at your remaining equity over time.
That said, when used carefully and strategically – ideally with professional advice from a financial advisor – lifetime mortgages can help unlock substantial amounts of capital whilst allowing borrowers to remain in their homes until they pass away or go into long-term care. This makes them one of the most popular forms of equity release available today.
Frequently Asked Questions about Equity Release Please click here
"The government is making it easier for homeowners to extend their properties outwards and upwards.
The new law to extend homes and revitalise town centres means that more and more people have decided to raise funds with a remortgage to fund improvements rather than move house.
Are you thinking of remortgaging your current mortgage? Let us represent you with our remortgage conveyancing service and and do all the legal work for you"
"What is conveyancing and the difference between a conveyancer and a solicitor?
Conveyancing is the legal procedure used to transfer the ownership of a property from one party to another, typically involving the buying and selling of properties.
A conveyancer is a specialist in property law, while a solicitor is a qualified legal professional who can deal with various legal matters, including conveyancing, and both can handle the conveyancing process"