Lawyer Claims Equity Release The Route Out Of Trouble For Some
Equity Release Scheme
05/02/2008
If 2008 does sees an economic recession, as many predict, how will Yorkshire consumers be affected? Howard Dapin a Partner at law firm Irwin Mitchell warns that for many they may find borrowing money becoming increasingly difficult.
However Mr Dapin, who specialises in advising clients on property issues, suggests there may be a silver lining for some Yorkshire home owners in the form of 'Equity Release' as a method for tackling their financial needs.
Mr Dapin said: "To be eligible for most Equity Release schemes you should be aged between 55 and 70 years of age and preferably own a freehold property worth at least £30,000."
"Provided you fit the criteria set out by the companies offering these products equity release can offer consumers the opportunity to raise money from their homes either as a lump sum payment or as regular income depending on the individuals needs."
"At a time when many lenders are tightening their belts on how much credit they are willing to offer people, equity release can offer home owners a safe, realistic alternative to deal with current debts or to cut monthly expenditure."
Equity release has continued to prove popular over the years and the number of applications continues to increase. Howard continued: "It isn’t suitable for everyone but, the increased interest in equity release as a method of financial planning demonstrates the simplicity and reliability of the product."
"It is also important for people to realise that despite the bad press that Equity Release products may have had in recent years things have now changed and that a reputable provider, who is a member of the SHIP (Safe Home Income Plans) scheme, can offer an Equity Release product that is safe, and which can guarantee against negative equity, meaning you will never owe more than the value of your home."
SHIP’s figures for 2007, released on 4 February 2008, revealed that the value of equity release plans sold over 2007 went up by 5%, with £1.2bn in plans being sold in 2007 compared to 1.15bn in 2006. The quantity of plans sold rose from 27,772 in 2006 to 29,293 in 2007.
"The industry offers flexibility, and a richness of diversity that provides products that meet most individual's needs and requirements, so it is important for people considering equity release to seek legal advice. This will ensure that they get the best deal for them and are able to fully understand the myriad of opportunities available to them."