Equity release makes it possible for homeowners who are at least 55 years to release money tied up in their property. In order to complete the equity release process, which will result in homeowners receiving tax-free income to spend in whatever way they choose, equity release solicitors are required.
The equity release provider will require their solicitor and the borrower will need to have his or her own solicitor enagaged in the process. When choosing a solicitor, homeowners should choose a solicitor who is a member of the Equity Release Solicitors Alliance or ERSA. ERSA was established on January 26th 2009 and consists of a group of law firms that specialize in equity release. The main goal of ERSA is to make sure that homeowners have expert legal advice before taking out an equity release plan.
Solicitors who are members of ERSA are required to have years of experience in equity release. Their experience will benefit their clients in that they will make sure that the legal aspects of the equity release process are adequately taken care of.
Equity release solicitors provide guidance to homeowners throughout the entire equity release process. They make sure that homeowners are aware of the risks and the rewards of the equity release plan that they have chosen and the legal obligations attached to it. Equity release solicitors also ensure that once the property is sold, the equity release provider receives the initial capital that was lent to homeowners and the accumulated interest.
Finally, it is the responsibility of equity release solicitors to make sure that they complete the Safe Home Income Plans or SHIP certificate. The SHIP certificate states that the equity release plan was discussed with the homeowner and that the homeowner understands the consequences of taking up the equity release plan. It is not possible for an equity release plan from an equity release provider who is a member of SHIP to proceed without a signed SHIP certificate. In the SHIP certificate, the equity release solicitor is acknowledging that all of the essential features and implications of the equity release plan have been brought to the attention of the homeowner. The SHIP certificate makes sure that there are not future misunderstandings & provides another layer of protection in the regulation of these financial products.
