FAQs

Yes, you can but this can be costly if you are still within the early repayment penalty charge period. Your financial adviser will be able to advise you on your financial goals and if, for example, you are wishing to seek a new plan at a lower interest rate a careful calculation will need to be done considering early repayment charges and the costs of setting up a new scheme, to ensure it is financially advantageous to you.

If you are wishing to move house, then Equity Release Council approved plans allow you to do so, transferring the equity release plan to your new property.

An important factor when discussing equity release with your financial adviser is to cover possible choices that you may wish to consider in the future: for example, retiring to your dream cottage by the sea or perhaps the property will be too big to manage when there is only one of you remaining.

All equity release products will have an early redemption penalty clause. It is important to discuss your longer-term financial goals with your financial adviser so that they can source a suitable product to align with your goals. However, the good news is that all Equity Release Council approved products provide for penalty free repayments.

Some lenders do offer buy to let equity release products. There will be specific requirements as to what type and duration of tenancies the lender will accept. Please enquire with your financial adviser as to availability and suitability.

The lenders have stringent lending criteria that must be met for them to lend on your property. An expert equity release solicitor will, through their experience, be aware of the requirements and will identify all documents required at the outset of the transaction to enable you to fulfil the requirements. Additionally, the Equity Release Council provides safeguards for the borrower which include ensuring that legal advice has been provided, your identity confirmed and that you have the capacity to enter the contract of your own free will.

We make the process as streamlined and stress free as possible by identifying all requirements as soon as possible and liaise with the lender’s solicitors at the earliest opportunity regarding any more unusual circumstances, so that we can agree how to resolve any anticipated issues.

Equity release is intended to be a lifetime product where the value of the debt increases over the term of the loan. Therefore, the checks and measures that lenders have are different because the lender will need to be repaid at the end of the term and wish to anticipate any potential issues with marketing the property. A normal residential mortgage is shorter term, with the debt decreasing over the term of the mortgage so the lender, whilst of course wishing to ensure that they have good security over the loan has different requirements.

Equity Release can be complex and varied, but the full complexities required to fulfil Lender requirements are not always apparent at the application stage (and usual time to instruct solicitors).

An experienced specialist equity release solicitor will anticipate and understand Lender requirements and the evidence required to satisfy them. Where evidence is not available, we have the experience to dynamically problem solve and good working relationships with other parties in the supply chain to work as a collaborative team.

Equity Release offers are of short duration: 42 days on average from offer to completion, so there is no time to be lost in protracted negotiations/communications endeavouring to identify how to resolve the complexity. Once an offer lapses there is a risk of interest rates and loan to value ratio’s changing such that the equity release is no longer a viable solution to your financial goal.

Time is very much of the essence. A specialist expert solicitor will achieve completion quicker and smoother by intricately understanding requirements gained through their skills, knowledge and experience.

Subject to the terms of the lease being acceptable to your proposed lender, yes you can.

All service charges etc. will need to be paid up to date and the terms of your lease complied with. Occasionally ground rent charges may exceed threshold levels which means that a deed of variation will need to be agreed with the freeholder to be acceptable to your equity release lender. In such circumstances these transactions can take considerably longer (many months).

We will ensure your lease is reviewed at the outset of the transaction to identify these types of issues. We understand how disappointing and stressful it can be to expect a transaction to complete within weeks and it then takes months. We will always provide our advice in a timely and honest manner.

Subject to the property itself being accepted as suitable for equity release yes you can, however the transaction is likely to be more complex and therefore will probably take considerably longer than a standard transaction. The exact time estimate varies depending on the circumstances.

We will advise you at the outset what needs to be done to make the title acceptable to your proposed lender, the documentation we require from you and the resultant impact on time to completion and any additional costs.

Whilst there may be good reasons that you do not wish to do so, we highly recommend doing so to avoid family conflict in the future.

• Access to tax free cash to use how you wish, after payment of existing charges.
• Facilitates achieving your financial/ retirement goals.
• Can help to reduce your estate for the purposes of inheritance tax planning (please ensure you take expert financial advice as this is a complex area).
• Your estate will never be left owing money. All Equity Release Council products have a no negative equity guarantee (provided the terms and conditions have been adhered to).
• Flexible to your financial needs for example, drawdown products provide the ability to access additional cash when necessary (subject to lenders terms and conditions being met).
• Ability to make penalty free payments.

Please note that these FAQs are up to date as of June 2023, and are intended as a general information guide. They are not intended as financial or legal advice and it is crucial to consult with an independent expert equity release financial adviser and engage specialist expert equity release solicitors.

• The equity in your home is reduced meaning the asset value is reduced to your estate i.e., less inheritance (which can also be an advantage – see below).
• Compound interest (where no voluntary payments are made) can entirely extinguish the remaining equity in your property.
• Any means tested benefits may be affected. You should discuss this with your financial adviser prior to proceeding with an equity release.
• Some restrictions on moving home.
• Ongoing obligation to keep your lender informed of certain events e.g., if you want to adapt your home, long trips away from home, if you wish to move someone into your home etc.