Equity Release - a POAT risk?

For older clients with most of their capital locked up in the family home, “equity release” (a form of mortgage, with loans secured on the property) may be one option for covering unexpected capital outgoings, or indeed to produce some extra income as the cost of care increases. Help is needed from specialist financial advisers, as solicitors are not authorised to give specific advice on mortgages or other financial products / investments.

However, solicitors are able to comment on proposals made by an IFA, and do become involved in the legal work required to implement the mortgage. We also regularly talk through with clients alternatives, such as the merits of “downsizing”, renting instead of buying, selling a share in your home to another family member, or moving in to a house owned by your children – that of course may be where POAT becomes a serious risk.