Equity release is a complex product and it is purchased by many people who are in their late 60′s and early 70′s. This age group are classed as vulnerable when it comes to making purchase of financial services products, this is why it is vital to seek independent legal advice before committing to an equity release scheme. The reason that this age group is vulnerable is that if they make a financial mistake then they have a shorter time than average to be able to recover the mistake.
It is important that a client obtains independent legal advice when taking out an equity release mortgage so that they fully understand the legal implications of doing so. Clients who tend to take out these types of mortgage are usually of retirement age and sometimes do so as they are living on a limited income and wish to increase their income by releasing some of the equity in their property. Some clients however, struggle to make ends meet and believe that they have no other options available to them. In such a position the client is often vulnerable and pressured and therefore needs clear advice and guidance before entering into the mortgage. Source: Joanne McNally, at the property department at Lees Solicitors LLP
Not all equity release schemes insist on independent legal advice and if this is the case then you would be well advised to seek advice and also if possible take a family member or relative with you to the meeting.
Equity release is available to those over age 55 years old, it comes in two main types of scheme, the first, lifetime mortgage and the second home reversion scheme.
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