A Comprehensive 8 Point Equity Release Guide for Scotland

If you are over 55 and own your own home, Equity Release offers a route to unlock the value tied up in the property. This equity release guide will take you through the process step-by-step, including the importance of seeking independent advice to assess whether equity release is right for YOUR circumstances.

Equity Release Guide Step 1: Assessing Your Financial Situation and Determining Your Objectives

Assess your current financial situation and consider your long-term objectives. Determine how much equity you wish to release and how you intend to use the funds. This step will help you evaluate if equity release aligns with your goals and financial needs.

Step 2: Seeking Independent Financial Advice

Before proceeding, seek independent financial advice from a qualified equity release specialist.  We work closely with a number of qualified advisors and can provide you with contact information.

Advisors will assess your situation, explain the risks and benefits associated with equity release, and guide you in making an informed decision. Advisors we work with are regulated by the Financial Conduct Authority (FCA) and are members of the Equity Release Council.

Step 3: Understanding the Legal and Financial Implications

Equity release involves legal and financial implications that must be thoroughly understood. An advisor will help familiarise you with issues such as interest accrual, compound interest, early repayment charges, and potential impact on means-tested benefits. Your advisor will also be able to address some common misconceptions associated with equity release, such as concerns about leaving debt to your loved ones.

Step 4: Conducting a Property Valuation and Obtaining Offers

If once you’ve taken advice you want to move to the next step, you’ll need a qualified surveyor to conduct a valuation of your property.  Your mortgage lender or your equity release advisor will normally arrange this.  This is the crucial step in determining the maximum amount you could release. Based on this valuation, equity release providers can make you an offer detailing the amount they might be willing to lend.

Step 5: Reviewing, Comparing and Deciding on Offers from Equity Release Providers

Your advisor will help you carefully review and compare the offers received from different equity release providers, discussing options including interest rates, repayment options, and other additional features. Based on the offers received and after considering all relevant factors, you can decide on the equity release plan that best suits your financial goals, provides the necessary funds, and meets your long-term objectives.  You can also decide that you have enough information to NOT proceed, and that equity release is not the right path for you.  Being regulated by the FCA and Equity Release Council, our advisors will not subject you to any high-pressure timescales or any other factors that leave you uncomfortable with the process.

Step 6: Engaging with a Wallace Quinn Solicitor

 The first five steps you undertake with a specialist Equity Release advisor.  However, once you have decided to progress with equity release, we get involved as your conveyancing solicitor and deal with the solicitor acting for the lender (and your Equity Release advisor) who will be involved with your application.  The conveyancing process then proceeds with similar steps to other house sales, but we will talk you through all of the steps at the start of the journey. 

Equity Release Guide Step 7: Receiving the funds

Once the conveyancing process is complete, you will receive the agreed-upon funds into your nominated bank account.  Your legal costs will normally be deduced from the total before the funds are sent to you.  You should consider seeking further advice from an Independent Financial Advisor on managing and investing these funds to help you achieve your financial goals.

Step 8: Conclusion – Empowering Your Financial Freedom with Equity Release

Equity release in Scotland can be a powerful financial tool, providing access to funds tied up in your property. But it is not for everybody.  This equity release guide is a useful introduction, but we cannot stress enough the importance of seeking independent advice from qualified advisors. If you would like an informal conversation with a Wallace Quinn solicitor, get in touch.