What is equity release?
As we start to live longer and retain the ability to stay in our own homes, the living costs that we get are under pressure to be covered by our pensions, both private and state. However, it also means that we stay in our properties for longer, and in most cases, the mortgage is usually paid off or very low. This opens up the possibility of using the home as a source of income via equity release. As a result, these Ascot solicitors deal with its legal process. Parachute Law Ascot-based Solicitors can advise and complete the application for you.
Equity is the value of the property based on its valuation minus any mortgage. If there is no mortgage, the property is defined as being unencumbered. This value is untapped and can be the source of high income. The organisation that offer equity release will lend you a specific amount of the properties worth. It is unlikely that they will go straightway to ninety per cent but start in more miniature stages.
This loan can then be used for living expenses in older age. Most offers operate on an Interest only basis. You just pay the interest that accrues on the lending. The mortgage is repaid on either your death or the selling of the property. This means that whenever the property is sold, the benefactors of your Will, or you if you move, will have to deduct the loan amount from the sale of the property.