Normally this would include the valuation fee made payable to the lender. Some equity release brokers do charge an advice fee on application; but at Equity Release Supermarket, we only charge our advice fee upon completion, so beware of paying unnecessary upfront fees. Yes, it does. On completion of the application form, it is submitted to the equity release provider who will instruct a local surveyor to complete a basic valuation of the property.
The role of this surveyor is to complete a report which will advise on the current market value based on a relatively quick sale. Additionally, the surveyor will ascertain whether any essential repairs will be needed should the property have material defects that could affect the long-term structure or re-saleability of the property. At the same time as the application is submitted, for speed of completion it is wise for the legal process to get underway.
Unless a client specifically requests to use their own family solicitor, we would recommend an equity release solicitor from ERSA Equity Release Solicitors Alliance. We have an experienced panel of equity release specialist solicitors covering England, Scotland and Wales. As part of the Equity Release Council standards, all applicants must be seen face-to-face by their solicitor as further protection.
There are many benefits of using our recommended panel such as speed and the quality of communication, as we have online access to their portals, providing efficiencies and enabling quicker completion timescales. Two sets of solicitors must be in place to carry out the whole process. Under Equity Release Council standards, different solicitors must be employed on behalf of the client and the lender.
Once instructed by the client or broker, the solicitor acting on behalf of the client will send out an initial questionnaire requesting further information. This will include a request for information to understand if any mortgage currently exists, the owners to the title, any restrictions, further tenants or major improvements that have been carried out with respective planning permissions.
This questionnaire also provides the permission for the prospective solicitor to act on their behalf. Should any existing charges by way of mortgages or secured loans be present on the title deeds then they must be removed prior to, or upon completion. Any mortgage will usually be settled by the proceeds from the equity release scheme at funds release stage.
However, another role of the solicitor will be to establish exactly how much will be required on the proposed completion date. This will be achieved by requesting a redemption statement from the mortgagee, who will provide the current balance and the daily accrual rate of interest being added during the interim period to completion date.
For an application to proceed through to completion, the lender will carry out certain checks to meet money laundering and the Consumer Credit Act requirements. This will be proof of ID including passport, driving licence or government backed evidence such as your annual state pension letter or Inland Revenue tax code notification.
Additionally, proof of address will be required, so a recent utility bill or bank statement will be necessary. Some lenders will also carry out credit checks.
You may ask why this would be necessary as NO monthly payments are usually required with a lifetime mortgage. Nevertheless, there would have to be severe credit problems for a lender to decline an equity release application due to adverse credit.
Our eligibility calculator is FREE and easy to use. Simply complete the form below. In this guide, we will focus on the most popular form of equity release, the lifetime mortgage.
For other types of equity release, the process will be very similar, and it will take around the same amount of time. But some of the terminology used will be slightly different. The first step towards getting equity release is to seek specialist equity release advice. The advice process should be split over two sessions, and only then should you make an application.
Equity Release advice meetings take, on average, one to two hours each. Therefore you can expect a total of two to four hours with your advisor before an application is submitted. There is no regulated timeframe between appointments; however, you can expect them to be on different days.
I typically leave a couple of days to break between meetings. However, much of this is led by you as my client as to how quickly you wish to proceed. I have written a complete guide on What happens at equity release advice meetings? Click here to read my guide. Following financial advice, you will receive a recommended course of action to take.
Where an equity release application is to be made to a lender, you should expect a timeframe of around eight weeks until you receive your equity release funds. We have frequently seen applications taking as little as three weeks. However, we have also seen more complex applications that take several months to complete. Let's break down the seven steps needed to get equity release, and how long you can expect each one to take.
All equity release lenders will have an application form to complete. Most require the application form to be signed by you, the client. However, some lenders only need your signature to accept the formal mortgage offer later with your solicitor.
I always pre-complete any application forms with the information that you have provided during our initial equity release advice meetings. A part of the application is a declaration which the equity release advisor must sign. Their signature is to confirm that they have passed the appropriate examinations, and have provided you with equity release advice. It is also a requirement that the advisor confirms your identity, and receives proof of your address.
I will ask for:. Once the application form is complete, it can be submitted to the lender. Different lenders have varying ways that they accept applications. Some require the forms to be posted, others emailed, and some have dedicated online portals for the advisors to submit the applications. Regardless of how your application is submitted, the lender will formally acknowledge your application, and they will instruct a surveyor to value your property.
Following the Covid outbreak, many lenders and surveyors have adopted a twin peak approach to property valuations. Where possible, the surveyor will conduct a desktop valuation of your property. They may require you to provide digital photos of your home to help with their assessment. Where a physical valuation is required, the surveyor will contact you directly to arrange your property valuation. The survey is to provide the lender with the market value of your home, on which they will base their formal mortgage offer.
Your lender will have to approve the new mortgage, though. If your new mortgage is much lower, depending on how much, you could incur early repayment charges. Therefore, we recommend speaking to an equity release advisor beforehand, especially if you think you might want to sell up in the future. They can help you weigh up the risks of an early repayment charge.
Leave your contact details below and one of the equity release team will give you a call to discuss your needs. I am the primary writer and author for Help and Advice, having originally helped start the site because I recognised that there was a need for easy to read, free and comprehensive information on the web. I have been able to use my background in finance to produce a number of articles for the site.
Outside of work I am a keen rugby player and used to play up to a semi-professional level before the years of injury finally took their toll. Now you are more likely to see me in the clubhouse enjoying the game. Email — james helpandadvice. Linked in — Connect with me. Want to know how long Equity Release will take for you? Have a free consultation with a specialist. Would you like some help with Equity Release? You can see how much money you could get with our calculator.
Or, you can speak to a specialist straight away and find out what the best deals are. Equity release: What is it? Two primary categories of equity release exist on the market : Equity release via a lifetime mortgage Equity release via home reversion schemes.
Topics that you will find covered on this page. You can listen to an audio recording of this page below. Here is a useful video about equity release. Try our free equity release calculator and see how much you could borrow in 30 seconds. How does a property valuation work? The equity release process? What things might delay my application?
Common reasons why people experience delays in releasing equity are as follows: Their property is unregistered Their property is, on paper, possessed by someone who is now deceased Their original property valuation was a significant overestimate, and hence a second valuation is needed down valuation Their property is currently being held in trust Restrictions such as county court judgements are being held on the title deeds If you think any of these problems might apply to you make sure you discuss your concerns with your equity release solicitor.
How can I speed up my application? What is the catch with equity release? Who is eligible for an equity release loan? How big a cash lump sum can I get? Can I be refused equity release? How long does it take to remortgage and release equity? Can I sell my house if I have equity release? See how much money you could be entitled to using the equity release calculator below. Want to find the best equity release deal or speak to a specialist to have your questions answered?
You can contact Key Equity Release, our partners, in one of 3 ways. Option 1 — Call directly on — Option 2 — Book an appointment directly in the calendar below, and one of the Key team will call you back at your chosen time to discuss your requirements Option 3 — Leave your contact details below and we will get in touch with you. Call us on : Option 2 — Book an appointment, in the calendar below, for an equity release specialist to call you back when its convenient.
Option 3 — Leave us your details and we will get in touch Leave your contact details below and one of the equity release team will give you a call to discuss your needs. Article author. James Lloyd I am the primary writer and author for Help and Advice, having originally helped start the site because I recognised that there was a need for easy to read, free and comprehensive information on the web.
Frequently Asked Questions What are the different equity release schemes available? How long will the application take in total? Share this page.
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