What we can help you with
- Whether equity release is an option
- Advice on terms of loan
- Liaising with Independent Financial Advisor
Equity release and remortgaging are both ways or raising or releasing money.
Equity in your home can be used to release money to fund your retirement and your Independent Financial Advisor may have recommended that you look at equity release. A Solicitor needs to be involved to deal with the legal formalities in the same way as a remortgage. We will also seek to satisfy ourselves that you are not under any duress in taking out the equity release loan and that you fully understand the terms of it.
We will also consider whether equity release is an option for you as part of your Inheritance planning. If so, we can refer you to an Independent Financial Advisor to explore the options.
Using equity release might allow you to stay in your home and not be forced to sell it sooner than you would want to.
Equity release is basically a life time mortgage secured on your home. Typically you do not have to make any repayments, but can if you can afford to do so. The interest due on the loan is added to the amount borrowed and paid off when you die, or if the property is sold sooner because you move into care.
You do not need to draw down on all the money at once, you might prefer to take smaller amounts when needed. Interest will only apply on the money actually drawn down, but you will have the security of knowing that you can call on further funds if needed.
There is a requirement that interest rates are fixed, or capped and various measures are in place to protect you. For example you are entitled to remain in the property for life, or until you move into long term care.
The amount you could borrow will vary and will depend on the value of your property and your age. Different lenders offer different terms, so it is important to take Independent Financial Advice.
Although remortgage conveyancing is less complicated than when you purchased your home, it does still involve some legal legwork. We will need to liaise with your existing lender, valuer and new lender. We will need to carry out various searches with the Land Registry and other authorities. Once you get your mortgage offer we will check it and advise you before signature.
We will sort out the financial side of things, and once complete register the mortgage with the Land Registry.
The remortgage process usually takes one to two months, but is generally quicker if you are using the same lender. If you have a current deal due to expire, then you should leave at least two months.