Set Up Costs

Set Up Costs


To obtain the best equity release deals, its important to focus on the set up costs involved.


The size of these equity release costs can vary significantly between lenders & also by the
type of equity release scheme selected. Other factors that can affect set up fees are the
value of the property & the equity release adviser who processes your application. Using a
thorough research programme can literally save you £1000's in the overall set up process.


Why consider equity release costs?

UK Equity Release schemes have become increasingly popular with retired people. If a lifetime mortgage or
home reversion is recommended, you need to ensure you are getting the best equity releasescheme. This
involves consideration of many financial factors; one of which will be the set up costs on application.


What are the application fees?

The equity release application process can be compared to that of a residential mortgage; likewise can the fees.
Equity release costs must be advised prior to application & can be categorised into five principle types: -



Valuation/Survey Fee

The valuation is usually the only up front cost that should be incurred. This will vary between lenders and based
on a tiered scale dependent on current market value. Therefore, the higher the valuation, the bigger the fee.
The valuation establishes whether the property is adequate security for the lender & if any conditions apply.

*TIP - Look for any special offers such as free valuations or a refund of the valuation fee!


Application, arrangement or completion Fee

A cost that can vary between £500 & £695, dependent upon lender. It is usually deducted from the advance on
completion. Some companies do add the fee & more home equity lender have NO application fee.

*TIP - By adding the fee, be aware you will be charged interest on this & it compounds yearly!


Solicitors Fees

These can vary significantly between £400 to £700 & covers the costs of the legal work carried out on your
behalf. You are free to choose whichever solicitor you wish & we recommend a solicitor experienced in equity
release schemes
. This can both speed up the application process & obtain a solicitor that has a low, fixed fee.

*TIP - Compare Equity Release has fixed fee agreement with ERSA solicitors starting from £425!


Financial Adviser or Mortgage Intermediary Fee

For researching, advising & processing an application the lifetime mortgage adviser will usually charge a fee for
their services. The basis of the charge could be a fixed fee or as a percentage of the equity released. A Client
Agreement Document will be provided, which should clearly outline the basis of the charges and client/adviser relationship moving forward.

*TIP - Don't accept the first offer. Compare equity release deals from different companies before choosing!


Further Advances

Should you require a 'top-up' to an existing lifetime mortgage it will depend upon which scheme was originally
taken. If this was a standard equity release plan then a further valuation & admin fee maybe payable. However,
if a drawdown plan was selected then no further fees are payable as this is built into the plan from outset.

*TIP - Plan ahead & consider what requirements you may have for the future as this could save money!


Compare Equity Release offer a NO obligation initial consultation, which is always free of charge.



For more key retirement solutions on how to release equity from your home, select the following links:-

Which equity release | Lifetime mortgage calculator | UK equity release | Equity release rates

Free guide request | How to book an appointment | Set up costs


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These are lifetime mortgage & home reversion plans. To understand the risk & features of these plans, request a personalised Key Facts Illustration. helps you to compare and arrange equity release schemes from the whole of the equity release market:

Aviva | Bridgewater | Hodge Lifetime | Just Retirement | LV= | more2life | One Family | Retirement Advantage | Pure Retirement L&G Crown