How Long Does Equity Release Take?

How Long Does Equity Release Take?

Equity release typically takes around four to six weeks. While in some cases, you may be able to get in faster than the four-week level, it’s uncommon and you should plan for that as a minimum.

Here's an initial breakdown that we'll go through in more detail later:

For some, equity release is a relaxed process and you can take your time deliberating the best options; but for others, the equity is needed for immediate use.

Understanding the process that goes into equity release and the type of arrangement that’s right for you can help you plan properly for your lifetime mortgage, HELOC, or other equity release agreement.

Let’s look at a breakdown of the timescale to see why that might be the case.

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Step 1: Researching and Getting Equity Release Advice

There are a range of good equity release mortgage options - with a core lifetime mortgage sitting as the most common choice - but which is right for you?

One of the key components to an equity release arrangement is the FCA’s (Financial Conduct Authority) strong adherence to a commitment of responsible lending. This means that there is a safety net of guidelines and processes to make sure you’re not being pushed into a poor decision.

Clifton Private Finance are a qualified independent broker and work with specialist partners experienced in the wide range of finance options available, who can talk you through the finer details of the different equity release products so you go forward with your eyes open.

Sadly, many elderly or vulnerable homeowners are directed by their family to agree to poor equity release options, or on the other side of the argument, to avoid all equity release products through a lack of understanding or personal incentives.

At Clifton Private Finance, we take our responsibilities seriously as a fully independent broker to work with you to find the product that is best suited to your requirements. There’s no bias to any lender, and absolutely no pushy salesmanship that will leave you feeling uncomfortable - just genuine, accredited advice from industry experts.

Don’t make a decision without walking away and really thinking about it. An equity release arrangement is significant and should be thought over fully before signing anything. It is also advisable to discuss your final decision with your family and anyone else it may affect.

What does all this have to do with the time it takes to get equity release?

The early stage of research and advice can, therefore, take a few weeks. Of course, if you know what you’re doing and are confident moving forward, it can also be a reasonably short period. On average though, we’d assume it takes one to two weeks to properly research and understand the equity release options available to you.

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Step 2: Making your Equity Release Application

The application for a lifetime mortgage or other equity release product is actually relatively simple, and if you are working with us at Clifton Private Finance to smooth the process, our parners will do it with you to make sure everything is properly in place - making it even easier.

However, you will need to have the right documentation on hand. For an equity release product this means:

• Personal identification - A passport or driving licence is preferable but a birth certificate is also acceptable.
• Proof of address - Bank statements, utility bills, council tax statements, etc.
• Income information - Depending on the equity release product, you may need to show income and pension information.
• Expenses - In some cases, you will be expected to show your expenditure if affordability tests are required.
• Existing Mortgage - If there is a current mortgage still on the property, the details of these will be needed (the mortgage will be paid off as part of the equity release arrangement).
• Title Deeds - Proof of your property ownership is essential, as are any leasehold arrangements if applicable.

Additionally, some equity release providers will want to see a current evaluation of your health and lifestyle as this can affect the terms of the agreement. This may mean you need to obtain a statement from your doctor.

With all the documentation in place, the application can be done swiftly.

Step 3: Property Valuation

The lifetime mortgage lender will need to undertake a property valuation to determine the true market value of your home.

Many lenders will do this for free, but you may need to pay a fee for others. This cost will have been discussed with you by your advisor prior to making the application.

Bear in mind that they will want to have full access to your property and to explore every room and outdoor space, so if you need time to prepare for their coming you should factor this in.

Step 4: Wait for Your Offer

With the application in place and the valuation done, you need do nothing but sit tight while you wait for your official offer. This should come in a week or less.

Step 5: Legal Advice

It is a mandatory requirement to obtain independent legal advice and to have the agreement signed in front of a solicitor.

This is an extra layer of protection for you as your solicitor will check every aspect of the agreement and ensure that you are making a properly informed decision.

It typically takes a week for this stage of the process.

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Step 6: Lender Processing and Requisitions

With everything signed, the lender will go through the formal stage of processing your documentation and making sure everything is in place for the release of the funds.

If your paperwork is all in place and there are no issues to be raised, then this process can be quite swift and only take a couple of days, but in some cases with a little back and forth it can take as much as two weeks.

Step 7: Completion and Money Transfer

With everything agreed and all documents in place, it only takes a few days to transfer you the money. In some cases, this can be as short as a single day, but it’s best to allow three days for a BACS transfer.

This closes the process and marks the completion of your equity release.

Apply with Clifton Private Finance

We’re here at Clifton Private Finance to make your equity release a smooth and simple process.

Our partners are available to discuss the entire process with you, helping every step of the way.

Call us today to discuss your equity release needs and get started on a path that’ll see you making the most from your home equity - as we’ve seen, in four weeks time you could have the funds in the bank!

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