Equity Release

The term ‘Equity Release’ is used to describe schemes whereby homeowners raise income or capital from their property. The two main types of equity release schemes are ‘Home Reversion Plans’ and ‘Lifetime Mortgages’.

Under a Home Reversion Plan all or part of the home is sold to a company and in return the homeowner receives a cash lump sum, an income or both.

With a Lifetime Mortgage the homeowner borrows against the value of their home releasing a loan which can be used to provide a cash lump sum, an income, or both. The loan does not have to be repaid until the homeowner dies or moves into long term care.

Equity release does not suit everyone and should not be undertaken without careful consideration and advice from an experience legal advisor. Coles Miller have an equity release specialist within our Wills and Probate Department who is able to advise on the implications involved.