Ashfords Solicitors - Equity Release Schemes Do Work!

Peter Barton, an equity release specialist with leading South West law firm Ashfords in Tiverton, believes that a recent, widely reported feature by the Which? Consumer group is causing unnecessary concern, especially among the elderly.

"Recently I've found that many people have been deterred from considering equity release schemes as an option to resolving their financial worries, or raising extra cash from their property," said Mr Barton.

"Just like pensions, home equity release schemes can be complicated so it's of paramount importance that people take independent, specialist legal and financial advice, a view also significantly shared by Age Concern.

"The recent Which? report really focused criticism on some of the equity release schemes which were available in the 1990's rather than those of today.

"Now equity release schemes are totally different and governed by the SHIP (Safe Home Income Plans) code of conduct. (See website address under notes to news desk)

"Whilst SHIP is a company supported by the leading providers of home income and equity release plans, it is dedicated entirely to the protection of plan-holders and the promotion of safe home income and equity release plans.

"As a result, equity release or home income schemes are far more regulated than previously and are widely recognised within the legal and financial services sectors as providing a viable option for resolving financial constraints or worries.

"There are a number of schemes which enable you to tap into the value of your home without having to sell it and move out.

"Thousands of retired homeowners have found that these plans do provide a safe and successful method of releasing regular income or a cash lump sum, to improve the quality of their life in retirement.

"The alternative may not be very attractive. Too many elderly homeowners find themselves in the unenviable position of having to watch every penny they spend from day to day, while most of their money remains locked up in their single biggest asset - their home."

Whilst home income plans and equity release schemes can resolve the problem safely, there are other schemes on the market which make the same promises but bitter experience has shown that they are neither safe nor successful.

To confuse matters, some of these schemes have sometimes been described as home income plans or equity release plans, too.

Mr Barton added: "Whenever someone is contemplating an equity release scheme, it is important to consult with a solicitor, preferably a specialist, who will be able to advise you on the legal implications.

"Then if you are satisfied, the solicitor will be able to give you details of specialist independent financial advisors who, in turn, will be able to advise you if equity release is appropriate to your financial circumstances or if there are alternatives that you should consider first."

"Sadly", concluded Mr Barton, "recent reports are deterring people from even contemplating equity release schemes which could make their future more financially secure. They have raised concerns which, if an individual was properly advised, would prove to be unfounded."

Ashfords is regulated by the Solicitors Regulation Authority. The information in this article is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice nor as an alternative to taking professional advice relating to specific circumstances.

24th March 2006

Key Contacts

Equity Release Schemes Do Work!

Introduction