Mis-sold Equity Release. What Is Equity Release In A 30 Second Read.

Equity release is a way of unlocking the value of your property and turning it into cash, without having to sell or move out of your home.
Equity release can be a great way to supplement your income in retirement, pay off debts, fund home improvements, help your family, or enjoy life more.
Equity release is available to homeowners over 55 years old, who can borrow up to 60% of their property’s value on a fixed or variable interest rate.
There are two main types of equity release products: lifetime mortgages and home reversion plans. Lifetime mortgages allow you to retain ownership of your home and repay the loan when you die or move into long-term care. Home reversion plans involve selling part or all of your home to a provider in exchange for a lump sum or regular income, while retaining the right to live in your home rent-free.

Equity release has some advantages, such as:

You can access tax-free cash from your home without having to make monthly repayments, unless you choose to do so.
You can stay in your home for as long as you want and benefit from any increase in its value.
You can choose how to receive the money, either as a lump sum, a regular income, or a combination of both.
You can protect a percentage of your property’s value for inheritance purposes, if you wish.
You are protected by the Equity Release Council’s standards and safeguards, which include a no negative equity guarantee, meaning you will never owe more than your home is worth.

Equity release also has some disadvantages, such as:

It will reduce the value of your estate and the amount you can leave to your beneficiaries.
It may affect your eligibility for means-tested benefits and tax credits.
It may be more difficult to move to another property after taking out equity release, as you will need to repay the loan or transfer it to a new home that meets the provider’s criteria.
It may incur higher interest rates and fees than other types of borrowing.

Most equity release products are sold by Financial Adviser of Agents on commissions which means they can be pressure sold and therefore increases the chance you may have been mis-sold equity release.

I hope this information helps you with your article. Please note that this is not financial advice and you should always seek independent advice before considering equity release.

If you think you have been mis-sold Equity Release contact us at Claimline Legal