Canny homeowners who have paid off their mortgages are realising that they are sitting on a mini gold mine as house prices continue to soar, especially in London. They are releasing money from their homes in order to be able to fulfil their dreams of adventures around the world.
Using the services of a mortgage solicitor in London can make this process much smoother. There are plenty to choose from, so it can be hard to know where to start looking. People who live in the West End may well choose Saracens Solicitors.
Known as equity release, taking money out of the house can be achieved under a number of different schemes. A mortgage solicitor in London can explain the difference between the various schemes so that the homeowner picks the right one for their needs.
A lifetime mortgage
This scheme allows homeowners to borrow money against the eventual sale of their home, either when they die or they go into residential care. Such schemes usually allow the homeowner to continue to reside in their home for as long as they like. They do not need to begin making repayments until the home is sold, either before or after their death. The catch is that the loan comes with interest that accumulates until the house is sold and is then expected to be paid off along with the original loan itself. A mortgage solicitor in London can help homeowners find a lifetime mortgage that allows them to pay off the interest as they go so that there is more in the Will when they die.
This is a much higher risk way of realising capital on one’s home, involving selling off a certain percentage of the home in exchange for an income or a lump sum. Homeowners can still remain in their property until their death or going into a care home, but it does mean that they can no longer sell their home as part of it now belongs to someone else. This complex procedure is always best done with the help of a mortgage solicitor in London.