Equity release
Equity release can be a valuable way to access the money tied up in your home without having to sell it, giving you greater financial freedom later in life.
Homeowners choose equity release for many reasons, from helping children onto the property ladder, fund home improvements or boosting their retirement savings.
Whatever your reasons, it’s essential to understand your options, the long-term implications, and the legal process involved. At Owen White Catlin, our experienced property solicitors provide clear, independent advice so you can make informed decisions that protect your future.
Talk to our property solicitors today
Our dedicated conveyancing team is highly experienced in all types of equity release. We’ll guide you through the process with clarity and care, including:
- Explaining the potential long-term effects of taking equity release
- Reviewing and preparing the deeds and documents
- Advising on inheritance and tax considerations
- Handling all related conveyancing or property law matters
- Ensuring compliance with the Equity Release Council’s safeguarding requirements
You can contact us using our online enquiry form, or call us directly on one of our office numbers. One of our expert lawyers will be happy to help.
Common questions about equity release
Below, we answer some of the most common questions about equity release, covering key points such as how it works, who it may be suitable for, and what you need to consider before proceeding.
Equity release allows you to unlock the value (equity) in your home while continuing to live in it. The amount you can release depends on factors such as your property’s value, your age, and your lender’s criteria.
There are two main types of equity release:
- Lifetime mortgage: The most common form. Available to homeowners aged 55+. You borrow money secured against your home, while retaining ownership. Interest is added to the loan, and the total is usually repaid when you die or move into long-term care. You can often ring-fence some of the property’s value to leave as inheritance.
- Home reversion: You sell all or part of your home to a provider in exchange for a lump sum or regular payments. You keep the right to live there rent-free, and when the property is sold, the proceeds are divided according to the share you retained.
Criteria vary between lenders, but typically:
- You must be at least 55 for a lifetime mortgage, or 65 for a home reversion plan (both applicants must meet the age criteria if applying jointly)
- Your property must usually be worth at least £70,000
- Any existing mortgage must be repaid, often using part of the released funds
- Some lenders may require that no dependants live in the property
Releasing equity can reduce the value of your estate, which may lower any Inheritance Tax liability. This is a complex area and depends on your personal circumstances. Our solicitors can explain how equity release could affect your estate and advise on ways to protect your long-term interests.
In many cases, it is still possible to sell your house but you will need to repay the outstanding loan, which may include early repayment charges. Some plans allow you to transfer the equity release to a new property, subject to lender approval.
Yes, but you will need to use part of the released funds (or other savings) to repay your existing mortgage in full, as well as meeting the lender’s criteria.
Both options can give you a lump sum in later life, so it’s worth weighing up each carefully. Downsizing may also lower your ongoing living costs, but moving comes with its own expenses, such as Stamp Duty, estate agent fees, and removal costs, as well as the emotional impact of leaving your home. We can guide you through the pros and cons of both, helping you choose the option that best suits your circumstances and future plans.
Equity release is a legal transaction so you are required to obtain independent legal advice before proceeding. This protects you from entering into an agreement you do not fully understand or that is not in your best interests.
Our role includes:
- Reviewing and explaining the legal terms in plain language
- Checking for any clauses that could disadvantage you
- Carrying out property searches and legal checks
- Liaising with your financial adviser and lender to ensure a smooth process