The Equity Release Process Explained
A step-by-step guide to help you unlock the cash in your home with equity release.
Making the Most of Your Home’s Value
There are a number of significant steps to go through when choosing the right Equity Release plan for you. On average, by choosing a skilled Solicitor familiar with the Equity Release process, this should take up to 8 weeks on average, sometimes longer.
Step 1: Your Equity Release Adviser
Choose your adviser wisely. Do not conduct this extremely important decision over the telephone, giving very sensitive information to someone you have never met before. Instead choose a local company with a National reach who will visit you in the comfort of your own home at a time that suits you. These consultations are free of charge and come without obligation on your part.
Step 2: Equity Release Products
Once you have decided upon taking an Equity Release plan after every alternative has been considered and a detailed fact-find carried out, your Adviser will recommend a product to suit your specific and unique needs, providing you with documentation highlighting all associated benefits and risks as well as any fees and costs associated with your Equity Release plan.
Step 3: Application Process
Your adviser will make the Equity Release application on your behalf to the chosen lender. The Regulations state you cannot do it yourself as this is strictly an advised process.
Step 4: Equity Release Valuation of Your Property
The Lender, on receipt of this application, will trigger a valuation to ascertain the true value of your property. The valuation is a very important and integral part of the process. Most are typically paid for by the lender and are carried out within a week of the application.
Step 5: A Successful Valuation Process
Once the valuation is to hand any amendments to paperwork can be made such as providing you with a revised illustration. This will now form the basis of the offer assuming also that the property conforms to the lenders lending criteria.
Step 6: You’re Happy With the Offer and Want To Go Ahead
The offer is now issued, typically two weeks after the valuation has been carried out. You, your adviser and your chosen Solicitor will receive a copy. Only then will your Solicitor contact you to arrange a face to face meeting with him/her. The regulations state that it must be with a qualified Solicitor not a paralegal.
Step 7: Instructing Your Solicitor
Once the Solicitor has gone through the required legal and regulatory procedures with you, he/she will commence the conveyancing process in conjunction with the lender’s chosen Solicitor. This can take up to 4 weeks depending upon how complicated your title is.
Step 8: Completing the Process
Once the Lender’s Solicitor are happy with all the legal work carried out by your Solicitor a completion date will be set. That means the monies will be transferred from the lender to your Solicitor. He/she will then settle any advice and legal fees directly from the Equity Release proceeds and the balance will be transferred into your account, typically on the same day. If you have other secured loans they will have to be settled first and any charge on your property removed.