Warner Goodman joins the Equity Release Council

Equity release is an increasingly popular way for individuals to fund their retirement or help a loved one onto the property ladder.  In recent years the practice has become more regulated in order to protect those releasing equity, namely with the introduction of the Equity Release Council (ERC) in 1991. We are delighted to have now joined the ERC; here Kiri Saunders-Brown, Equity Release specialist, explains more about why we have joined and how we can help you if you are considering equity release.

What is the Equity Release Council?

The ERC are the industry body for the UK equity release sector, and represent the providers, qualified financial advisers, solicitors, intermediaries within the sector to ensure they are providing the right type of advice to individuals and following the strict rules of conduct to keep their clients’ best interests at the centre of their conversations. 

In order to apply, member organisations are asked to demonstrate their experience in the field of equity release, with accreditations and other activity as a firm also scrutinised.  The individual specialists are also researched to ensure they are qualified to give advice on equity release.

What is equity release?

If you are looking for another source of income to fund your retirement, to go on that once in a lifetime holiday or to gift to your children to help them buy their first home, then equity release may be the option for you. 

There are two different varieties of equity release product and the most appropriate plan for you will depend on your own situation and reason for releasing equity:

1. Lifetime mortgage – under this type of plan you would borrow against the value of your home which would be paid as a lump sum or as an income.  You would remain in your home, retaining full legal ownership, and only be liable for repaying the sum when you either sell your home or pass away.
2. Home reversion plan – under this plan, you would sell all or part of your home to a private company and receive the sale amount as a lump sum or as an income.  You can still remain in your home, either rent free or paying a monthly rent until the property is sold. 

“We are delighted that we have been accepted into the Equity Release Council as we can now offer our clients unique added value through our membership,” explains Kiri.  “As with all arrangements of this nature, there will be pros and cons depending on your situation.  We can help you understand the different options available to you and assess whether equity release is right for you, or whether an alternative such as re-mortgaging may be better placed.  We can also help you understand the other considerations for the future, such as the impact on future Inheritance Tax payments, and give you options to protect those in the future.”

If you are considering equity release and would like more information, you can contact Kiri on 023 8071 7438 or email kirisaunders-brown@warnergoodman.co.uk.  Alternatively, you may also find the following resources useful:

• Equity release explained
• Should I release equity in my home?
• First time buyers being helped by equity release
• Do I need to see a Solicitor before releasing equity in my home?
• How long does it take to release equity?
• Can I use equity release to buy a second property?
• Is equity release safe?
• Can I sell my home if I have released equity?
• Should I downsize or release equity?
• How does equity release affect Inheritance Tax?

ENDS

This is for information purposes only and is no substitute for, and should not be interpreted as, legal advice.  All content was correct at the time of publishing and we cannot be held responsible for any changes that may invalidate this article.