Equity Release Solicitors

Equity release transactions are becoming more common as an aspect of lifetime planning. At AFG Law, we believe that our role is to facilitate this for those people who wish to release capital tied up in their home while continuing to live there for as long as they can. Equity release can also help provide the funds for people to make the most of their retirement years, particularly where there are no relatives or their family members are already financially provided for.

If you are interested in releasing equity from your home, please do not hesitate to get in touch with our equity release solicitors today.

What Is Equity Release?

Put simply, equity release refers to a range of financial products that allow homeowners aged 55 and over to access part of the money tied up in their home. It allows homeowners, typically aged 55 and over, to unlock tax-free cash from the value of their home without needing to sell or move. The release of equity is typically used for a variety of reasons, such as improving their quality of life, making home improvements, managing finances in retirement, or helping family.

The two most common types of equity release schemes in England and Wales are:

Lifetime Mortgages – Homeowners take out a loan secured on their home while retaining ownership. Interest is usually rolled up and paid when the property is sold, typically after they die or move into long-term care.

Home Reversion Plans – Homeowners may sell all or part of their home to a provider in exchange for a lump sum or regular payments. They live in the home rent-free for life, but no longer fully own it.

All equity release products are regulated by the Financial Conduct Authority (FCA), and most are backed by the Equity Release Council, which sets additional consumer safeguards.

Eligibility for Equity Release

Equity release is primarily available to older homeowners, but eligibility depends on more than just your age. For a lifetime mortgage, the minimum age requirement is 55. If you’re considering a home reversion plan, you must be at least 65 years old. For joint applications, both individuals must meet the minimum age criteria for the chosen plan.

If you still have an existing mortgage on your home, you may still qualify for equity release, but any outstanding mortgage or secured loan must be paid off at completion. The amount you owe will impact how much equity you can release.

Equity release might not be suitable if you have dependents living in your home, particularly if they rely on staying there in the long term. However, if those individuals don’t have a legal interest in the property, an equity release solicitor can help you explore your options. In such cases, your dependents will need to receive independent legal advice. If they wish to remain in the home after your passing, they must formally acknowledge that they have no legal right to do so under the terms of the equity release plan.

Equity Release and Inheritance

Equity release reduces the value of your estate. A conveyancing solicitor can explain how much equity will remain after interest rolls up and discuss options like:

• Drawdown lifetime mortgages (to limit initial borrowing)
• Partial repayments
• Inheritance protection guarantees

They can also coordinate with your independent financial adviser to help you weigh the trade-offs and create a strategy that balances cash needs with your long-term goals.

Advantages and Disadvantages of Equity Release

Equity release has several advantages and disadvantages that you should carefully consider before making a decision. One of the main benefits is that it allows you to access tax-free cash from your home without needing to move.

You can stay in your property for life, and with most plans, you don’t need to make monthly repayments, unless you choose to. Interest is usually added to the loan and repaid when your home is sold. Many providers also offer a no negative equity guarantee, which means you’ll never owe more than your home is worth. Some plans allow you to protect a portion of your property’s value for inheritance, and there are flexible options like drawdowns or moving house without penalty.

However, there are drawbacks. Equity release reduces the value of your estate and can leave less for your loved ones. As interest compounds over time, the amount you owe can grow quickly if you don’t make repayments.

Taking out equity may also affect your entitlement to means-tested benefits like Pension Credit or Council Tax Support. If you want to repay the loan early, you could face substantial charges. Equity release is a long-term commitment and might not be suitable if you are thinking of downsizing soon. There are also costs involved, such as legal fees, valuation charges, and lender arrangement fees.

In short, equity release can provide financial flexibility in later life, but it’s important to fully understand the long-term impact. Getting professional legal and financial advice is essential before proceeding.

The Role of Equity Release Solicitors

The legal process for equity release involves several important steps to make sure everything is completed correctly and in your best interest. First, you should instruct a solicitor who specialises in equity release, such as AFG Law. After you have chosen a plan with help from a financial adviser, the lender will send a formal offer directly to your solicitor.

Your solicitor will then carefully check the offer and related documents to ensure everything is clear and fair. This includes looking at the loan terms, how the interest is structured, repayment conditions, your rights to stay in the home, and whether the provider follows Equity Release Council standards.

A title check will follow where the solicitor confirms you legally own the property and checks for any issues, such as existing charges or restrictions, that could affect the equity release.

Next, you will have a face-to-face meeting (or a secure video call) with your solicitor. At this stage, they will:

• Explain the terms in plain language
• Make sure you fully understand the risks and commitments
• Confirm your mental capacity to proceed
• Witness you signing the legal documents

This meeting is a legal requirement and confirms your formal consent.

Finally, once everything is signed and in place, the lender releases the funds. Your solicitor manages the final steps, including registering the equity release with the Land Registry.

Equity Release Solicitors at AFG Law

Ideally, you should contact a solicitor as soon as you decide to proceed with equity release; after meeting with a financial adviser but before you receive the formal offer. Early involvement helps prevent delays and ensures you understand all legal implications from the outset.

We offer a specialist service with the in-depth knowledge and understanding of equity release schemes necessary to advise clearly on the legal implications and the impact on inheritance and other issues. We help to guide our clients through the whole process with helpful and friendly advice – whether it’s a lifetime mortgage or a home reversion scheme.

We are experienced in working with most major equity release providers, including Aviva, Prudential, Just Retirement and LV, and are members of the national solicitors network for equity release matters. We strive to ensure that matters proceed as quickly and smoothly as possible, whilst at the same time offering a sympathetic and understanding service to our clients.

Our property team can help you with a full range of legal services.

Contact property@afglaw.co.uk for further information or call us on 01204 920107.