Helping You Understand Your Equity Release Transactions.

Equity Release is a method by which you can create extra cash (to spend or save as you chose) by using the value of your home. There are three types of equity releases:-

Cash Release Plans – here you agree to take out a loan based on the value of your home. The loan is secured on your home but there are no monthly repayments to make (any interest due on the loan rolls up each year). The loan is repaid when your home is finally sold (usually when you move into long term residential care or after your death).

Home Reversion Plan– here you agree to sell a certain percentage of your home to a reversion company for a fixed amount. There is no loan to repay, however, when the property is sold the reversion company receives the same percentage of the sale proceeds as it put in. For example, if the reversion company pays you 30% of the value of the property initially, it will be entitled to 30% of the sale proceeds even where the value of your home has increased. With this plan you retain the right to live in your home for the rest of your lifetime.

Home Income Plans – here you raise money by taking out a loan secured on your home but part of that loan must be used to buy you an annuity (this gives you a regular guaranteed income for the rest of your life). Part of this income pays the interest on the loan with the rest being spendable cash.

To determine which Plan best suits your circumstances you should seek advice from Simplicity Financial Services. Hackett Windle deals only with the legal aspects of the transaction.

1. Seek advice from Simplicity Financial Services. He or she can determine the best Plan for you to adopt as well as giving advice as to whether to invest the funds released, obtain life cover, the tax implications and so on.

2. Discuss your Equity Release Plan with your family. Your family and any other potential future beneficiaries of your estate need to be involved right from the start to avoid misunderstandings. They must understand that the value of your estate will be affected by the need to repay the equity release once the property is sold.

3. Check with one or more of the Department of Social Security, the Citizen’s Advice Bureau and your local authority whether taking up the equity release will affect any present or future entitlement to State or other benefits.

4. Seek legal advice i.e. from Hackett Windle! Do you need to consider making a Will? Give us a call.

STEP 1 – see Simplicity Financial Services to determine the best Plan for you. Discuss in detail with your advisor and family members.

STEP 2 – have your home valued. This will be carried out by the Equity Release Mortgage company.

STEP 3 – the legal work – see below. Send your title deeds to Hackett Windle.

STEP 4 – receive the money.

STEP 5 – keep in touch with the Equity Release company. You will have certain obligations to keep after the transaction has completed.

Hackett Windle will carry out the following work (list is not exhaustive):

• Obtain your Title Deeds
• Carry out checks confirming your ownership of the property
• Obtain all necessary search results
• Prepare documents for your signature
• Report to you on your Equity Release offer and ensure you understand the details of your equity release plan
• Work with the Equity Release company to fulfil their requirements and arrange a suitable date for the release of the funds

It is important that you send the title deeds to us as early as possible so we can commence the legal work for you.

A copy of your offer will also be sent to us. Providing we have the title deeds we will prepare a report and send this to you together with all the documents you need to sign. If you do not understand anything we have sent you then please call us to assist.
As soon as you receive the report/documents from us you need to read them carefully and make sure you understand what you are signing. You should then send what we tell you back to us.

Once you have returned the signed documents to us we will check them to make sure everything is in order and then we will agree a date (the completion date) with the Equity Release company for the funds to be released.

You need do nothing!

We will receive the funds from the Equity Release company and then arrange for those funds to be sent to you (usually by cheque). We will deduct our fees and disbursements from the funds before sending the balance to you.

We will arrange for the Equity Release Mortgage to be registered at HM Land Registry. The Equity Release company will hold the title deeds until the loan is repaid.

Every case is different, but it usually takes between four and eight weeks between the time your application is made to the day the money arrives.

We are experienced solicitors and you can be sure that we will do everything we can to make the transaction as quick and painless as possible but if there are problems we will let you know about them and tell you how to resolve them – don’t forget we are on your side!

Please remember the following;

• You must keep the property fully insured
• You must keep the property maintained and to a reasonable standard
• You can only charge the property to any other lender with the prior consent of the Equity Release company
• Keep the Equity Release company informed of any changes in your personal circumstances