Equity Release Solicitors in Sidcup, Bexley and Kent

With older generations becoming increasingly property rich but cash poor due to the rising costs of living, equity release provides a convenient way to raise money whilst ensuring you can continue living in your home.

Whether you need to pay for care, want some extra money to pay for household expenses, or you want to help your children onto the property ladder, equity release can help you achieve your financial goals. Typically, you can release some of the money tied up in your home whilst retaining the right to live there for the rest of your lifetime or until you move into permanent residential care.

At Woolsey Morris & Kennedy Solicitors, we can expertly handle the conveyancing aspects of the transaction on your behalf. We are not authorised to offer financial advice or comment on the suitability of a lifetime mortgage (these are the responsibility of your financial advisor), but we can offer independent legal advice on how the mortgage will operate and what is expected of the borrower.

For further information, get in touch with our equity release solicitors in Sidcup, Bexley and Kent by giving us a call, emailing enquiries@wmk-law.com, or by filling in our online enquiry form for a quick response.

What is equity release?

Equity is the value of your home less the value of any outstanding mortgages. For example, if your home is worth £200,000 and you have an outstanding mortgage of £50,000, the available equity is £150,000.

Equity release is the process of releasing equity in your property without having to sell up and move out. We offer advice relating to lifetime mortgages, a type of equity release which involves taking out a loan which is secured against the property.

As with all financial products, it’s crucially important that you seek independent financial advice before entering into an equity release.

How do lifetime mortgages work?

This involves taking out a loan which is secured against the legal title of your home whilst retaining full ownership. You can take your money either as a lump sum or in smaller amounts over an agreed period of time. You need to be at least 55 years old to take out a lifetime mortgage.

Whilst interest accrues on the lifetime mortgage, you do not have to make any repayments (unless you want to and this is agreed with your lender). Instead, the interest is rolled up in the loan. You can also ringfence some of the equity in your home to leave to your loved ones as inheritance.

Unless you decide to pay back money whilst the mortgage is running, all money owing to the lender, which includes the compounded interest, is paid back from the sale of your home. The lender can never seek to recover more than the value of the home (unless there has been a serious breach of the mortgage) during your lifetime, no matter what has happened to house prices or how long you have remained living in your home. Lifetime mortgages are fully financially regulated and also subject to the Safe Home Income Plans scheme.

We have many years’ experience of how lifetime mortgages operate and are very familiar with the different providers of those mortgages. We fully appreciate that clients have a variety of reasons for securing a lifetime mortgage on their house and how, importantly, it can allow them to carry on living at home.

Is equity release right for me?

Equity release isn’t right for everyone. First, you may want to consider whether downsizing to a smaller, cheaper property would be more beneficial.

Equity release can be an expensive option, particularly where you choose not to make any payments, resulting in the interest being rolled up in the loan. This can severely limit the amount of inheritance you’re able to leave your children after you die.

However, understandably, many people are reluctant to leave their home after so many years or decades. If this is the case and you are finding it difficult to get a standard remortgage, equity release may be the right option for you.

Can equity release reduce Inheritance Tax on my estate after I die?

Equity release can reduce the value of your estate which could, in turn, reduce the amount of Inheritance Tax due on your estate after you die. However, it is rarely a good idea to take out an equity release plan for the sole reason of reducing Inheritance Tax.

We highly recommend that you consult an independent financial advisor before entering into an equity release to reduce Inheritance Tax.

Why choose Woolsey Morris & Kennedy’s equity release solicitors?

At Woolsey Morris & Kennedy, we have over 60 years’ experience providing the highest quality of legal advice to clients across London and Kent.

Our priority is achieving positive, realistic outcomes to your legal queries and issues. We can handle all aspects of your equity release transaction on your behalf, including liaising with your provider, arranging for any existing mortgages to be paid off, and providing in-depth advice about the process.

We have been awarded the Law Society Conveyancing Quality Scheme Accreditation for our expertise in all residential conveyancing matters, including buying and selling property, remortgaging and equity release.

Our equity release lawyers will act efficiently to progress your transaction as swiftly as possible. We’re highly responsive and always available should you have a question or concern. We’ll also provide regular updates about the progress of your case.

Woolsey Morris & Kennedy is independently regulated by the Solicitors Regulation Authority (SRA).

Speak to our Equity Release solicitors in Sidcup, the London Borough of Bexley, Kent

For further information, get in touch with our equity release solicitors in Sidcup, Bexley and Kent by giving us a call, emailing enquiries@wmk-law.com, or filling in the enquiry form at the top of the page.