If you’ve done all your homework and decided that equity release is right for you, you’ll be eager to know about equity release time frames, and when you can expect to get your money.
How Long Is the Equity Release Application Process?
From the time you begin the application process, it takes 4-6 weeks to complete a lifetime mortgage agreement and receive the money. For home reversion, this is 6-10 weeks. The wait times will vary by lender.
From start to finish, an application for equity release will typically take 4-6 weeks for a lifetime mortgage, and 6-10 weeks for home reversion, although these can vary from lender to lender.
Continue reading to get the full Equity Release application details
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- – What are they Equity Release associated costs?
- – Why is Equity release so popular?
We update all our guides regularly. If you are researching Equity Release and we haven’t got an exact guide that helps you, keep coming back as we update daily.
What Are the Equity Release Stages?
The first thing you’ll need to do is speak to a financial adviser (list of registered FCA Financial advisors) who’ll provide you with formal advice – without this, you’ll never get accepted by a lender. With the advice in hand, you can complete an application form with your lender, which will also lay out the fees that you’ll need to pay throughout the process.
Once you’ve applied, the lender will employ an independent surveyor to visit your home and conduct a valuation. This will involve looking at the likely price it would sell for, based on the local area and adjacent properties sold in the last 3-6 months, as well as inspecting your home for any essential repairs that could be needed, or structural issues that may cause the lender any concern.
According to the Equity Release Council 37,000+ people used Equity Release schemes in 2018, releasing over £3.06bn from their properties.
Equity Release Legalities
After that, it’s time to go through the legalities, so you’ll need a solicitor. It’s recommended you take on an Equity Release Council solicitor as they’re experts in the field – find one through the Equity Release Council website. Your lender will have their own solicitor too. At this stage, it’ll be determined whether you still have an existing mortgage that needs to be repaid by the loan before you get your funds, and ensuring the contracts are in place for the lender to be paid once you move into care or pass away.
At this stage it’s into the formalities, where you’ll need to provide proof of ID such as a passport or driving license, just to fulfil consumer credit act requirements. You likely won’t need to undergo a credit check, since the loan is secured against your home, but if your lender does require it they’ll do it at this stage.
The Equity Release Completion Date
Once all the above is taken care of, your solicitor will set the completion date, which will likely be around 6 weeks after you first applied. The funds will be paid to your solicitor who will deduct their fees before the cash is then transferred to your bank account, ready for you to use as you see fit. You can, if you prefer, request a cheque which will usually save you a small fee, but it will delay receiving your funds while you wait for it to clear.
Your solicitor is there to support you throughout, as is your broker, so feel free to chase them at any stage during the process if you want an update on the time scales for completion. But with an expected duration of just six weeks, it won’t be long before you can start putting your money to good use.
Quick Equity Release FAQs
Home reversion plans are, in essence, a means of selling a share in your property to an investor, in exchange for payment. There are no repayments, with the investor receiving their share of proceeds when the property is eventually sold.
The Equity Release Council is the industry body which represents equity release providers, qualified financial advisers, solicitors and intermediaries. Equity release is a growing sector, especially for older homeowners who may have limited access to finance.
You need to be at least 55 years old to apply for equity release in the UK. If you are planning to make a joint application, this applies to both of you.
Equity release drawdown works by giving you the value of your loan as a pot that you can make withdrawals from. You’ll only pay interest on the money you decide to withdraw.
How Can Money Savings Advice Help You With Releasing Equity?
Here at Money Savings Advice, we have partnered with some of the UK’s leading Equity Release brokers. They have already helped thousands of people get the best Equity Release deal and they can do the same for you.
Choosing an independent adviser means they won’t recommend a scheme unless they are sure it is in your best interests. Their advice is also regulated by the FCA, which gives you an additional layer of protection.
If you would like to speak to one of these brokers who can provide you with a ‘whole market quote’ then click on the below and answer the very simple questions.