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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

We cannot thank Mark enough for all his help & advice and guiding us through the process. He made it easy, very friendly... READ MORE

Mr & Mrs s - Sheffield, South Yorkshire

Adam is very knowledgeable on the matter we raised, and his explanations were very clear and easy to understand.

Mr & Mrs G - London

Sara has recently helped us with an equity release on my mum’s property. Not only was she professional & thorough, but... READ MORE

Mrs K - Brentwood, Essex

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

Excellent service from Liam Jenkins and team Thorough, responsive and very efficient. Everything moved at a good pace, much... READ MORE

Mr & Mrs M - Bedford

Allen Tomlinson was first rate. We had many problems caused by Aviva & the valuer, but Allen remained calm and supportive... READ MORE

Mr M - Richmond-Upon-Thames

From first meeting to cash in the bank took just 28 days. Much faster than I could have expected.

Mr H - Richmond, Surrey

Andrew was very friendly & professional. He provided a clear explanation of the process. His advice was succinct & considered.... READ MORE

Mr W - Dartmouth, Devon

I am so pleased I chose Equity Release Supermarket, as the decision turned out to be the right one. Professional from the... READ MORE

Mr H - Hamilton, Scotland

All very helpful. What I really like is that they always respond quickly to any question you may have and nothing is too... READ MORE

Miss K - Liskeard, Cornwall

The whole process was easy to understand throughout and the time from application to receiving our funds was very quick with... READ MORE

Mrs C - York

Always a traumatic time to find yourself on your own having lost your partner of many years. Feeling quite fit and healthy... READ MORE

Mrs H - Hartlebury

Simply fabulous service. I would say that the help and advice I got from Claire was superb. Every effort was made to ensure... READ MORE

Mrs B - Fareham, Hampshire

Sue appreciated that we had carried out extensive research ourselves so was able to aim our discussions at the appropriate... READ MORE

Mr & Mrs H - Morecambe, Lancashire

Tara was fantastic! Extremely helpful and understanding of our situation.

Mr & Mrs B - Essex

Dan was very polite and professional. He took his time to really understand what we were looking to do and took onboard any... READ MORE

Mr & Mrs F - Skipton, North Yorkshire

From first to last we were very impressed by your service & pleasantly surprised by how quick completion was, considering... READ MORE

Mr S - Hastings, East Sussex

Derek Wren was professional and gave sound good advice without any pressure or hassle.

Mr & Mrs G - Godalming, Surrey,

Anna was empathetic to our requirements and her advice and recommendations helped to clarify our decision.

Mr C - Rochdale

I have enjoyed speaking to Gareth. He is a very nice and friendly person and he is an asset to your company. The whole... READ MORE

Mr & Mrs B - Stockport, Cheshire

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

Mr & Mrs Barrett - East Sussex

Stuart Young was efficient in the way he explained the numerous options available to me. I never felt under pressure and... READ MORE

Mrs T - Winchester, Hampshire

I want to thank Haydn for my excellent guidance throughout the process. I felt heard and supported all the way through and... READ MORE

Mr H - Leeds

A huge thank you to Paul and Collete for their hard work, patience, and regular contact during the process of obtaining equity... READ MORE

Mr & Mrs S - Hull

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 persistent and helped us get the best rate where others had failed. The case had a few obstacles and the service... READ MORE

Mr and Mrs M - Kings Lynn

Equity release gets bad press, but the flexible loan is perfect for me. I feel very secure & very pleased it is still my... READ MORE

Mrs S - Kidderminster, Worcestershire

I thought this process would be quite complex & a little invasive, but the adviser was very clear & explained things very... READ MORE

Mr W - Stone, Staffordshire

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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