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How does equity release work?

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Checked for accuracy and updated on 27 June 2023

Equity release allows homeowners over the age of 55 to unlock the value of their property without the need to sell or downsize.

In principle, equity release schemes come in two formats:

Lifetime mortgages are a type of mortgage secured on your property which can be your main residence, second home or even a holiday home.

Homeowners continue to own their home and can choose either a single cash lump sum, income or take smaller chunks of money over time – known as drawdown. All the money released is tax-free and the homeowners get to stay in their property until they die or go into long-term care.

The money raised from any equity release scheme can be used for any legal purpose: from home improvements to clearing existing debts or mortgages.

And if it’s just some extra funds needed to buy a new car or a once-in-a-lifetime trip, that’s fine too – we never tell you what to do with your money.

Or

Home reversion plans allow you sell a percentage of the value of your property in return for a tax-free cash lump sum, or series of capital amounts. The home reversion provider offers a lifetime tenancy to the homeowners, enabling them to live rent free in their home for the rest of their lives.

Although home reversion has a minor role in today's equity release market, they still provide peace of mind as a way of releasing tax-free cash AND guaranteeing an inheritance for your beneficiaries.

What’s the equity release application process?

At Equity Release Supermarket, we provide a transparent and customised service which sees our experienced and friendly advisers guide you through the whole application process. From initial research to the successful release of funds at completion, you can rely on our team to explain everything in a language that’s easy to understand.

Here is a guide to explain the equity release application process:

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1 Advice and recommendation

The first part in the equity release process is to have a free initial consultation with one of our advisers. They will provide you with a personalised suitability report based on your circumstances and products currently available in the market.

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2 Application

Following acceptance of our recommendation, your equity release adviser will complete an application form, collecting supporting documentation and identification. Our new business team will then forward your file onto the equity release provider.

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3 Valuation report

Upon receipt of your application, the lender will instruct a local independent surveyor to contact you and arrange a mutually convenient valuation of your property. The surveyor will conduct a market appraisal, advising its current value and condition for security purposes. The outcome of this report will determine how much equity can be released.

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4 Conveyancing and legal

Your appointed equity release solicitor will be responsible for dealing with the legal process. They will liaise with the lenders’ solicitor and fill out an initial questionnaire about you and your property. You will then receive an offer from the lender, along with a Solicitor's Certificate.

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5 Offer made

Once the lender deems the surveyor’s valuation report satisfactory, you will be sent an equity release offer. This confirms the terms and conditions of the mortgage, including the rate, charges and amount borrowed. The original offer is sent to your solicitor, requiring a signature in the presence of your solicitor during a face-to-face meeting.

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6 Completion

Finally, when the lender’s solicitors have completed their final checks of all the legal paperwork, they will set a completion date. The funds released are sent to your solicitor initially with any charges deducted. Dependent upon your preferences, the net amount will then be forwarded to your nominated bank account or posted via cheque.

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7 Enjoy the proceeds!

With the funds released, you are now free to spend the equity release proceeds in whatever way you wish. Equity Release Supermarket prides itself on service, so we will always try to check-in on an annual basis to make sure the plan remains competitive.

What our happy customers have to say about our equity release advisers

Paul Newsome was extremely helpful & efficient & using Equity Release Supermarket enabled us to get the best deal & the benefit... READ MORE

Mr & Mrs T - Donaghadee, County Down, N Ireland

Extremely responsive to our requirements, especially as ours were slightly non-standard. Allen provided a range of options... READ MORE

Mr N - Dorset

Mr Young was very polite, informative and gave very clear information. He explained why he was asking various questions,... READ MORE

Mr and Mrs S - Bath, Somerset

Sara Whitbread provided an excellent service. She enables us to find the perfect offer & the whole process was handled swiftly,... READ MORE

Mrs A - Hereford, Herefordshire

From the first meeting to the finalisation, everything went very well. Would definately recommend David McGirr.

Mrs E - Kelty, Fife

A well-oiled service! Very professional and good service. My adviser was always there when I needed information and help. ... READ MORE

Mr H - Milford Haven, Pembrokeshire

Nothing is 100%, but boy this was close! This is a first class professional unit. They explained, outlined & covered all... READ MORE

Mr & Mrs C - Beckenham, Kent

I really felt like I was dealing with a professional who knew what I wanted and needed. My options were clearly explained... READ MORE

Mrs A - East Lothian

Everything very efficient, especially my adviser Andrew Ross. Considering we are under lockdown, it couldn't have been better.... READ MORE

Mrs D - Torquay, Devon

The adviser was very thorough in explaining the process & his recommendation. Derek went through all the options & alternatives... READ MORE

Mr & Mrs K - Enfield, London

You have a brilliant financial advisor in Hannah, I wouldn't hesitate to recommend her and Equity Release Supermarket.

Mr D - Rochester, Kent

Excellent Service. Mark was very helpful & always returned calls very quickly if unavailable. We were always kept upto date... READ MORE

Mr & Mrs W - Redditch, Worcestershire

A smooth episode all-round, which could have been so much more fraught, being a quite complex operation.

Mr & Mrs G - Lowestoft, Suffolk

The service was excellent right through the process, Paul kept updated at all times, everything was explained, and independent... READ MORE

Mr & Mrs B - Norwich

Excellent, professional service, everything was done in a timely manner. calls happened when promised.

Ms B - Forest of Dean

The service provided & information available was excellent which allied to a very informed & personable advisor made the... READ MORE

Mr S - Moreton In Marsh

Mark,Thank you so much for arranging the Just Retirement Lifetime Mortgage for me. When you see yourself running out of... READ MORE

Mr M - Worthing, Sussex

‘John’s patience and clear explanations provided us with the reassurance that we had made the right decisions’

Mr & Mrs Barrett - East Sussex

From the outset my contact at Equity Supermarket understood my wishes and gave excellent detailed information for me to make... READ MORE

Mr & Mrs G - Littleborough

Would put anybody in touch with Sue Eastham, a highly professional & lovely lady who really cares about offering the best... READ MORE

Mr & Mrs R - Bollington, Cheshire

This has changed our lives completely, setting us free from our continued debt cycle, it’s like a whole weight has been... READ MORE

Mr T - Lincolnshire

From start to finish everything was explained very well. Very friendly staff, very professional indeed and would certainly... READ MORE

Mrs B - Blackpool, Lancs

My Adviser offered me a range of products that could be suited to what I was specifically looking for. This enabled me to... READ MORE

Mr A - County Durham

I want to say thanks for the excellent service I received, Jo gave me help and advice with a smile.

Mrs F - Camberley, Surrey

Gary was very clear with his explanations and helped us understand all our options. Everyone involved was very helpful and... READ MORE

Mr and Mrs R - Canterbury

She is patient, understanding, incredibly knowledgeable and will point you towards another direction if she feels that this... READ MORE

Mr S - West London

All options very well explained, and Adam was very patient.

Mr & Mrs B - Hailsham, East Sussex

How long does the equity release application process take?

A lifetime mortgage scheme usually takes somewhere between 4 to 6 weeks to complete, while a home reversion plan is more like 8 to 10 weeks, assuming the title on the house is clear. How long this takes will also depend largely on how efficient and experienced your solicitor is.

Applying for equity release involves legal work, which should be handled by a solicitor with expertise in equity release. This can help to avoid any potential delays in your application.

Equity Release Supermarket can provide a panel of qualified equity release solicitors to choose from, who can handle your application. All these solicitors offer a home visit if required and a competitive pricing structure, backed up by a 'no completion, no fee' guarantee.

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