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Showing posts from October, 2011

What is equity release?

Equity release is a term that refers to various ways in which mainly older homeowners can use their homes to generate income or lump sums, either with a mortgage repayable on death, or by selling the property (or part of the property) but continue to live in it during their lifetime.
If anybody thinking about entering into a scheme of this type it is most important to seek advice from a solicitor who has experience in dealing with these transactions.
A good solicitor will warn you about certain aspects of these arrangements which are as follows:
Maintenance and repair
You will continue to be responsible for maintaining and repairing the property and therefore you should ensure that you have sufficient reserves to meet your obligations.
Some arrangements place an obligation on you to seek the consent of the lender before carrying out any alterations or making any additions.
All adult owners and occupiers in these arrangements have to be part of the loan agreement. If they are not and yo…

Dont let romance blind you when buying a home!

I have acted for many first time homebuyers and as you would expect many of these clients have had to make significant financial sacrifices to save money for a deposit.  For many of these clients their heads are very much in the clouds. The romance of living and owning a home together for the very first time makes it difficult to discuss and provide advice on the financial implications of what is clearly a major life changing decision.
In a number of these cases advice has to be given because one partner may be putting more money into the transaction than the other. It is not uncommon for the deposit to be as much as 30% of the purchase price and for this to be funded by savings accumulated before the couple met. This is not of course an arrangement confined to the first time buyers.  There are also clients who are for example looking to buy a property with a new partner following death, separation or divorce.
The common thread is that at this point in time the relationship may be at a…