How to apply for equity release: the process & how long it takes (2024)

Learn about the equity release process and how long it takes in our helpful guide below.

The equity release process will typically take about eight weeks from start to finish, though it may be longer or shorter depending on your circ*mstances.

The good news is that releasing equity from your home is a more seamless, less time-consuming business than it once was.

So just what is involved between the start and completion date?

Continue reading to learn more about how long the equity release process takes.

Want to skip the guide and get an equity release adviser to walk you through the best options for your situation? Find the right adviser fast with our matching technology.

Summary

• The equity release process will typically take about eight weeks from start to finish.

• The time it takes to complete depends on the type of equity release product you choose.

• A specialist equity release adviser can help you with your application process.

The timescale of the different types of equity release

The equity release application process and the length of time it takes to complete depends on the type of equity release product you choose.

There are two types to consider: the lifetime mortgage and home reversion.

Their timescales are slightly different:

• A lifetime mortgage may or may not involve making regular payments. This is up to you and the type of product you choose. Interest is added monthly or annually, and the loan is paid when you die or move into long-term care. The application process for a lifetime mortgage usually lasts between four to six weeks.

• The alternative equity release plan is called home reversion. This means the provider buys all or a share of your property in return for regular income or a lump sum. You have the right to live in the property rent-free until you die or move into long-term care. At this point, the provider will receive their share of your home’s valuebased on youragreement. As long as the title of your house is clear, applying for home reversion takes around six to eight weeks.

How to apply for equity release: a step-by-step guide

1.Take financial advice

Speak to an independent mortgage broker or financial adviser specialising in equity release. Your adviser will continue to be vital to your application, so consult them at every stage.

Your adviser will consider all your circ*mstances, such as your age, lifestyle, family situation, general health and other sources of income.

This will help them give an independent professional view on whether equity release is the best option for you, how much to release if so, and choose the right product. They will also be on hand to answer any questions or concerns.

2.Submit your application

Your application process must be completed with your adviser (whether this is a mortgage broker or independent financial adviser).

You’ll also need a solicitor, as this is a property transaction.

At the application stage, you’ll probably need to pay a valuation fee to your chosen lender, but your adviser will help you avoid any unnecessary upfront fees.

Once your application is complete, it can be submitted to your equity release provider, who will conduct credit ID and title checks before contacting a surveyor.

3.Get a valuation

When the lender has received your application, they will ask a local surveyor to do a basic valuation on your home.

This is simply to establish a current market value with a reasonably quick sale in mind.

They will find out how much similar properties nearby have sold for in the last few months and see if your property needs any work that could affect its value and saleability.

In most cases, you will pay for this valuation, but it isn’t a huge amount—and equity release providerssometimes offer free valuations.

4.Find the right solicitor

You should choose a solicitor who has experience with the equity release process.

To save time, it’s best to arrange one when you submit your application so there’s no delay in starting the legal process.

Some offer a ‘no completion, no fee’ agreement, which is always good to have just in case. The legal costs are usually around £500-£600.

5.Completion and receiving your money

When the legal checks are done, and a valuation is completed, your solicitor will set a completion date.

This is when the lender will release the arranged funds, which will either be paid into your chosen bank account or as a cheque.

The other fees you owe include your legal costs, payable to your solicitor, and either a percentage of your loan amount or a flat fixed fee to the broker who has arranged your equity release scheme.

These are normally deducted from the amount you have borrowed.

With careful research and good legal support, arranging equity release that suits your life and plans shouldn’t be a drawn-out or lengthy process.

Provided there are no hiccups, it should be no more than eight weeks from start to finish.

If you found this article helpful, you might also find our articles on equity release for under 55sand remortgaging to release equity informative, too.