Unlocking Wealth in your Home - Lifetime Mortgages & Equity Release 

House prices have had an incredible run. In the forty years we’ve been in Pinner, we’ve seen house prices rocket and a whole host of changes in the area.

The best things of course have been helping people to buy their own homes in which to raise their families. For many we’ve seen the kids born, attend our excellent local schools and eventually fly the nest. The next move is not always the easiest, however. We know that for many, moving to a smaller home will make perfect sense as it gives them a more manageable home and releases some of that equity tied up in the house. For some the decision is easy but for others its just too hard to leave a home with such fond memories.

That’s probably why we’ve seen increasing interest in equity release mortgages. There are two types of arrangement:

A lifetime mortgage enables you to take out a loan, secured on your home, which you receive tax free. Instead of paying interest it “rolls up” so that the original loan, plus interest, is repaid after your death.

A home reversion plan works differently. You sell a part (or all) of your home and receive a tax-free lump sum and a lifetime lease on the property. Again, there are no ongoing payments. The house is sold after your death and the lender gets back it’s percentage share.

Whilst these plans may sound attractive there are downsides. Firstly, they reduce your estate which you leave to your loved ones. Secondly, they may have an impact on any state benefits you might be entitled to.

If you’ve decided that equity release is for you, and you’ve found a lender, it’s important to have someone on your side, explaining the legal implications and helping you through the process with a minimum of fuss. At Keith Flower Solicitors we can take care of all legal aspects of equity release mortgages.

Keith Flower Solicitors – we’re here for every step of the journey