​Equity release has emerged as a popular financial solution for homeowners seeking to unlock the value tied up in their properties, providing access to funds without the need to sell or relocate.

Traditionally, law firms like Ashfords LLP played a pivotal role in guiding clients through the legal intricacies of equity release.

However, it's essential to note that Ashfords has undergone significant changes in its service offerings in recent years.​

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Ashfords' Transition in Equity Release Services

Ashfords LLP, once renowned for its comprehensive equity release legal services, made a strategic decision in 2022 to divest its equity release division.

This move led to the establishment of Barton Law Limited, spearheaded by Peter Barton, the former head of Ashfords' equity release team.

Barton Law now continues to provide specialized legal services in the equity release sector, maintaining the legacy and expertise cultivated at Ashfords.

Understanding Equity Release

Equity release allows homeowners, typically aged 55 and over, to access the equity tied up in their property without the need to move.

This can be achieved through various products, with lifetime mortgages being among the most common.

Such financial arrangements can provide lump sums or regular income, offering flexibility to meet individual financial needs.

Key Considerations When Exploring Equity Release

1. Financial Implications: Equity release reduces the value of your estate and may affect your entitlement to means-tested benefits. It's crucial to assess the long-term financial impact.​
2. Interest Accumulation: With products like lifetime mortgages, interest is compounded over time, which can significantly increase the amount owed. Understanding the terms is vital.​
3. Alternative Solutions: Consider other options such as downsizing, remortgaging, or utilizing other savings and investments before opting for equity release.​
4. Inheritance Considerations: Releasing equity can affect the inheritance you leave behind. Discussing this with family members and considering their perspectives is advisable.​

Types of Equity Release Plans

There are two main types of equity release plans:

1. Lifetime Mortgage – This is the most common option, where you take out a loan secured against your home while still retaining ownership. Interest can roll up over time, and repayment occurs when you pass away or move into long-term care.
2. Home Reversion Plan – With this option, you sell a portion of your home to a provider in exchange for a lump sum or regular payments. You can stay in your home rent-free, but you no longer fully own it.

Each plan has its own benefits and drawbacks, so it's essential to seek professional advice before making a decision.

Legal Aspects of Equity Release

Equity release involves complex legal agreements, so consulting a solicitor is crucial.

A legal expert can help with:

• Reviewing contract terms to ensure transparency.
• Explaining the implications for inheritance and taxation.
• Ensuring compliance with regulatory protections, such as those set by the Equity Release Council.

Since Ashfords LLP has transitioned its services, those seeking legal guidance may consider Barton Law Limited, which specializes in equity release legalities.

How to Choose the Right Equity Release Provider

When selecting an equity release provider, consider:

• Reputation & Accreditation – Look for lenders who are members of the Equity Release Council.
• Interest Rates & Fees – Compare rates and understand additional costs such as setup fees.
• Flexibility of the Plan – Check if the plan allows for voluntary repayments or partial withdrawals.

Taking the time to research and consult with professionals ensures that you choose a provider that meets your financial needs and long-term goals.

Common Questions

Conclusion

While Ashfords LLP no longer offers equity release services, the expertise and services have transitioned to Barton Law Limited under the leadership of Peter Barton.

For those considering equity release, it's imperative to seek specialized legal advice to navigate the complexities involved.

Understanding the implications, exploring alternatives, and making informed decisions will ensure that equity release serves as a beneficial component of your financial planning strategy.