How Long Does Equity Release Take?

If you are considering taking out equity release, you will probably have lots of questions about the process and how long it will take. There is no fixed timeframe for how long equity release takes from start to finish, as several factors can influence the overall duration.

In this article, we explain all of the steps involved in taking out equity release and outline the different factors that determine how long each stage may take.

We also have a separate article that provides a comprehensive overview of everything you need to know about equity release.

To briefly summarise the benefits of equity release, it allows you to access some of the value tied up in your property without needing to move out of your home. In most cases, you are free to spend the money as you choose (provided it is for lawful purposes), and there are no mandatory monthly repayments.

However, there are also situations where equity release may not be the most suitable option, such as when selling the property and downsizing could be more beneficial. Your equity release adviser will discuss all alternatives with you in full detail.

Getting Equity Release Advice

Taking out an equity release product is a great financial option for many people, but for others there may be alternative solutions that better suit their needs. This is why it is important that the decision is well researched and supported by expert advice, ensuring it is the right financial choice for you and your family.

As well as understanding the impact equity release may have on your home ownership and your family’s inheritance, you should also be aware of any wider financial implications. For example, any benefits you currently receive could be affected by taking out equity release.

Before deciding whether to apply for equity release, you should book an appointment with an adviser. These appointments typically take between 2 and 4 hours in total, allowing the adviser to build a full picture of your financial situation and recommend suitable options based on your circumstances.

You may wish to have family members present at the meeting so they can fully understand how the equity release product works and what will happen to the property when you pass away or move into long-term care.

An adviser may begin with a short initial conversation, followed by a longer advice appointment. In some cases, the advice can be provided in a single meeting if you have all the required documents and information available. To speed up the process, advisers will usually provide a list of required documents in advance so you can prepare them ahead of time.

The timeframe for the advice stage is generally dictated by availability. Some advisers may be able to offer an appointment within the same week, while busier advisers may only have availability several weeks after initial contact.

Completing Your Equity Release Application Process

Once you have had your sessions with an equity release adviser and they have explained the different options, and you are happy with a product, the next stage is to complete the application.

The equity release adviser will usually have pre-filled a considerable amount of the form based on the information gathered during your advice meetings, which should save time.

You will need to carefully check all the information in the application to ensure it is correct before submission. Inaccurate details could result in your equity release application being declined, so double-check everything.

The adviser will also require proof of ID, such as a passport or driving licence, and proof of address to submit with your application.

Submitting Your Lifetime Mortgage Application

Once you have double-checked all the information in your application, it is ready to be submitted. Many equity release providers now offer online portals where applications can be uploaded. Other providers may require the application to be posted, which can add a few days to the overall process.

How quickly the application is received and reviewed by the provider’s administration team depends on the company. Some providers respond within a few hours, while others may take days or even weeks during busy periods.

Once the application has been reviewed and the provider is satisfied with the information, your property will need to be valued.

House/Property Valuation

The provider will instruct a surveyor to value the property, as this will be an important factor in determining how much equity they are willing to release. They will also check that the property meets their criteria. Most providers only accept properties that are in good condition and that they consider easy to sell.

During the valuation, the surveyor will need access to every room in the property to determine its current market value. The valuation usually takes around 30 minutes to complete.

Some lenders adapted their valuation process due to COVID-19 and completed valuations based on digital photos, but many have now returned to physical valuations.

The surveyor will typically send the valuation to the lender within 48 hours; some may send it while still at your property.

The Formal Mortgage Offer

Following receipt of the valuation, the equity release provider will pass the application to their underwriters. The underwriters will review the application, the survey report, and your credit history to decide whether a formal offer can be issued.

If everything is satisfactory, the provider will issue the equity release offer, including the amount they are willing to release. The offer is usually made around 48 hours after the surveyor’s report has been received.

Financial Adviser and Legal Advice

One copy of the offer will be sent to you, and another will be sent to your solicitor. Your solicitor will review the terms and conditions of the offer to check for any potential issues. If they identify any concerns, they will bring them to your attention so you can decide whether to proceed with the equity release product.

It is a legal requirement to receive independent legal advice when taking out an equity release product. Your solicitor will discuss the offer with you to ensure you fully understand the legal implications of securing equity release against your home.

You will be required to sign the deed, similar to a standard mortgage, and the signature must be witnessed. Since this document must be handled physically, this step can take up to a week to complete.

Requisitions

While your solicitor may have questions about the offer, the lender’s solicitor may also raise questions, known as requisitions. If requisitions are raised, the process could be delayed while waiting for responses.

In many cases, there are no requisitions, resulting in a ‘clean application’ which is more straightforward and proceeds quickly. This stage of the equity release process typically takes between 1 and 2 weeks.

Completion

The completion process is similar to when you buy a property, agreeing on a completion date and the transfer of funds. The financial details will depend on the type of equity release product you have chosen. You may have agreed to take one large sum upfront, or a sum now followed by further instalments in the future.

You can choose the method of transferring the funds, such as CHAPS or BACs. Your solicitor will arrange for the money to be paid into your bank account. CHAPS usually transfers on the same day, while BACs can take up to three days for the funds to reach your account.

What Can Slow Down an Equity Release Application?

There are a number of reasons that your equity release application could be delayed, such as:

• Information not disclosed at the advice meeting. If you provided incorrect or inaccurate information to the equity release adviser and checks reveal discrepancies, this can cause delays or even lead to the application being declined.
• Property down valuations. If you provide an unrealistic property value estimate and the surveyor values it significantly lower, this can delay the application.
• Deceased owners on the title deeds. If your spouse has passed away but is still on the mortgage deeds, this will slow the application process.
• Lease extensions. If a lease is too short for the equity release to proceed, the process could be delayed until the extension is arranged.
• CCJs. Having a County Court Judgment (CCJ) on your credit file can result in a delay or potential decline of the application.

What Can Speed Up an Equity Release Application?

There are several actions that can speed up the equity release application, including:

• Preparing documents before the advice meeting. By having the required ID, proof of address, and any other documents ready, you can avoid delays while waiting for these items.
• Doing your research before speaking to an adviser. If you understand the different types of equity release products and the benefits of each, you will spend less time asking basic questions. You should still seek the adviser’s recommendations, but you will have a better understanding of how equity release works and its impact on your family.
• Contacting your solicitor at the beginning of the process. Some people wait until action is required before contacting their solicitor. By reaching out early, they can schedule you in faster and be aware of your intentions from the start.

How Long Does the Equity Release Process Take?

The full equity release process typically takes between 6 to 8 weeks, from your first conversation with an equity release adviser to the completion date. This timeframe can vary depending on your individual circumstances, legal processes, property-related factors, and your chosen lender.

Before contacting an adviser, many people take the time to learn more about equity release and discuss the potential financial decision with their family. Early conversations are an important part of the journey, especially if you are concerned about inheritance implications.

Discussing your plans can clarify your aims and requirements and highlight questions to ask a financial adviser or mortgage broker later.

One of the key reasons people choose equity release today is to provide financial support to family now, rather than through inheritance later. While this can help reduce inheritance tax depending on your situation, it is always best to work with an adviser who can explain the details.

Contact a Mortgage Broker Today

At Boon Brokers, we offer free expert equity release advice.

As a fully independent and regulated broker, our dedicated experts can help guide you through the most suitable equity release products on the market today, while tailoring your search to your needs and financial goals.

Contact Boon Brokers today and learn how you can take the first step towards unlocking your property’s value with stress-free confidence.