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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

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

Mr & Mrs B - Hailsham, East Sussex

Paul knew his products and in my opinion advised us on the best product for our circumstances. He was easily contacted and... READ MORE

Mr & Mrs B - Driffield, East Riding of Yorkshire

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

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

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

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

David took his time going through the different scenarios that were open to my situation. Very professional and quick.

Ms Y - Haddington, East Lothian

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

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

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

Superb advice right from the start. Our wishes & concerns were taken fully into account when selecting the best product.... READ MORE

Mr & Mrs P - Fareham, Hampshire

The adviser I dealt with was polite and friendly, easy to contact and kept me informed as things progressed.

Mr P - Polegate, East Sussex

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

Full & comprehensive information provided together with close contact throughout the process. Very prompt turnaround following... READ MORE

Mr & Mrs T - Carnforth, Lancashire

We both found the experience straight forward thanks to the detailed advice given by Gareth and the rest of the people assigned... READ MORE

Mr & Mrs T - Hull, Humberside

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

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

Ms B - Forest of Dean

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

Our adviser was highly professional, helpful & clear. Equity Release Supermarket provide a seamless, efficient service. I... READ MORE

Mr & Mrs E - Milford-On-Sea, Hampshire

Mark was brilliant! He kept me informed every step of the way. So, a big, big thank you Mark.

Mrs H - Nottingham

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

Mr & Mrs Barrett - East Sussex

Tara was an exemplary advisor in my case every step of the way. She spoke with clarity using language I could understand... READ MORE

Mrs D - West Sussex

Dave was a great guy. He put me at ease straight away and was very patient and understanding, explaining everything very... READ MORE

Miss G - Ellesmere Port, Cheshire

Despite the limitations imposed by Coronovirus, I was extremely pleased by the highly professional approach adopted by all.... READ MORE

Mr W - Knebworth, Hertfordshire

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

Mrs F - Camberley, Surrey

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

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

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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