Keep up to date with the latest equity release news including updates on new products, rate changes and any special offers we can pass on from time to time.

Freephone

How does equity release work?

Compare Equity Release

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:

1

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.

2

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.

3

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.

4

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.

5

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.

6

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.

7

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

The process was made very easy and went through so quickly. We were very impressed as any worries we had, were quickly covered. ... READ MORE

Mr W - Broxburn, West Lothian

Anna was superb in helping us through the minefield of equity release. I would seriously recommend her to anyone who wants... READ MORE

Mr N - Suffolk

Our adviser - Paul Newsome went way beyond the call of duty to get us our money and we can only be really thankful to him... READ MORE

Mr & Mrs S - Louth, Lincolnshire

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

Mr & Mrs B - Hailsham, East Sussex

Our adviser - Sue Eastham was fantastic. Always available and nothing was too much trouble.

Mr & Mrs F - Bredbury, Gtr Manchester

No hassle, sensible advice, all issues covered. Made so much sense and very pleased.

Mr & Mrs A - Carlisle, Cumbria

Deciding who to trust with such an important financial decision is daunting. Rebecca looked after us from our first enquiry... READ MORE

Mr & Mrs M - Leeds

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

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

Mr S - Moreton In Marsh

Fantastically looked after throughout & left me with a great plan. Claire made certain that this was the best product for... READ MORE

Mr & Mrs A - Canterbury, Kent

I had an excellent experience using Gareth as he explained everything in easy to understand manner. Gareth & his online... READ MORE

Mrs P - Merseyside

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

Ms B - Forest of Dean

‘In these uncertain times, John's support and extensive knowledge have been outstanding. My husband and I have previously... READ MORE

Mr & Mrs J - Cardiff, Wales

Excellent advice and regular follow up throughout the whole process.

Mr W - Barnsley, Yorkshire

Allen impressed from the start & proved to be most responsive & helpful when we hot some difficult challenges. Highly professional... READ MORE

Ms O - Salisbury, Wiltshire

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

First class service from Tara, thank you.

Mrs M - Saltburn, North Yorkshire

Hannah Boxshall was excellent. She took us through everything, was never pushy and was an absolute delight to deal with. An... READ MORE

Mr & Mrs B - Tadley, Hampshire

Andrew was an excellent adviser, extremely patient and willing to visit on more than one occasion.

Mrs B - Plymouth, Devon

Excellent service. Derek Wren explained everything we needed to know in a friendly manner.

Mr & Mrs C - Isle of Grain, Kent

Excellent and professional service. Stuart Young was very helpful and explained everything in a knowledgeable and friendly... READ MORE

Mr P - Newby Bridge, Cumbria

I cannot recommend Paul highly enough and would have no problem recommending him if someone is considering equity release.... READ MORE

Mr J - Ely, Cambridgeshire

Daniel was really informative and didn’t put any pressure on us to make a decision

Mr & Mrs S - Sheffield, South Yorkshire

I have nothing but praise for the excellent service that ERSupermarket has given me. The process of getting an equity release... READ MORE

Mr L - Portstewart

I cannot recommend Sara highly enough – dealt with her for the last 10 years. She is not only a fantastic person to partner... READ MORE

Mr and Mrs M - London

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

Mrs F - Camberley, Surrey

We were very pleased with the service your company supplied. Mr Sykes was a great help guiding us through the paperwork.

Mr P - Telford, Shropshire

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.

Expert advice, whenever you need it