EQUITY RELEASE PROCESS GUIDE
What Happens After You Apply for Equity Release?
Once your lifetime mortgage application is submitted, it passes through a series of lender, valuation and legal checks before your money can be released.
This guide explains the nine usual stages, who is responsible for each one and what you can do to help your application run smoothly.
Written by Graham Clelland, Managing Director of My Later Life
The Equity Release Legal Process in One Minute
- Your lifetime mortgage application is submitted.
- You instruct an independent solicitor.
- Your solicitor checks the legal title to your property.
- The lender arranges a property valuation.
- The lender issues its formal mortgage offer.
- Your solicitor gives you independent legal advice and completes the documents.
- The solicitors deal with any final conditions or enquiries.
- The mortgage completes and the net funds are transferred to you.
- Your solicitor registers the lender’s charge at HM Land Registry.
Who Does What During an Equity Release Application?
Several professionals are involved in a lifetime mortgage application, but each has a different role.
Your My Later Life adviser
Understands your circumstances, considers alternatives, recommends a suitable product, explains the recommendation and supports you through the application.
The lender
Assesses your application and property, issues the formal offer and releases the funds once all its requirements have been satisfied.
The valuer
Assesses the property on the lender’s behalf and reports on its value, condition, construction and suitability as security.
Your independent solicitor
Checks the property’s legal title, explains the legal effect of the mortgage and manages the conveyancing through to completion.
Your adviser provides financial advice. Your solicitor provides independent legal advice. Both roles are important and one does not replace the other.
STAGE 1
Your Application Is Submitted
After your adviser has taken time to understand your needs, discussed the alternatives and recommended a suitable lifetime mortgage, you can decide whether you wish to apply.
If you choose to proceed, your application is sent to the lender. Your adviser will explain what supporting information is required and help make sure the application is complete.
There is no need to rush this decision. Ask as many questions as you need and involve your family or another trusted person if you wish.
STAGE 2
You Instruct an Independent Solicitor
You will need a solicitor to act for you. Your choice of solicitor is yours, although we can recommend and provide details of firms experienced in equity release if that would be helpful.
The solicitor will normally send an initial pack containing their terms of business, forms about you and the property, and details of their costs. They will also need to verify your identity and may ask for photographic identification and proof of address.
Complete and return the forms carefully. If a question is unclear, ask your solicitor rather than guessing. Missing signatures, unclear copies or unanswered relevant questions can cause delays.
STAGE 3
The Property’s Legal Title Is Checked
Your solicitor obtains the title information for your home from HM Land Registry, or reviews the title deeds if the property is unregistered.
These checks can confirm:
- Who legally owns the property
- Whether an existing mortgage, secured loan or restriction is registered
- Whether the property is freehold or leasehold
- Whether any rights, covenants or title issues need attention
- What must be dealt with before the lifetime mortgage can complete
If you have an existing mortgage or secured loan, your solicitor will usually request a redemption statement showing how much is needed to repay it. An old mortgage that has already been repaid but still appears on the title may need to be removed.
Leasehold homes, trusts, unregistered titles, restrictions and missing documents can require extra work. This does not automatically mean the application cannot proceed, but it may affect the timescale.
STAGE 4
The Lender Arranges a Property Valuation
The lender will arrange for a valuer to assess your home. Depending on the lender and property, this may involve a physical visit or another valuation method.
The valuation is for the lender’s benefit. It helps the lender confirm the property’s value, condition and suitability as security for the lifetime mortgage. It is not the same as a full structural survey.
The figure may differ from an estate agent’s estimate because the lender’s valuer is also considering features that could affect the property’s future saleability.
If the valuation is lower than expected, your adviser will explain how this affects the amount available and discuss the possible next steps.
STAGE 5
The Lender Issues Its Formal Offer
If the lender is satisfied with its assessment, it will issue a formal mortgage offer. Copies will normally be sent to you, your adviser and your solicitor.
Your adviser will talk you through the financial details, which can include:
Read the offer carefully. Tell your adviser promptly if any personal or property information is incorrect, or if your circumstances or plans have changed.
STAGE 6
You Receive Independent Legal Advice and Sign the Documents
Your solicitor will explain the legal effect of the lifetime mortgage and your obligations under it.
For plans meeting Equity Release Council standards, the required independent legal advice must be provided by a solicitor in a physical face-to-face meeting.
Your solicitor will want to make sure that you:
- Understand the nature and long-term implications of the arrangement
- Are choosing to proceed freely and without pressure from anyone else
- Understand when the lifetime mortgage will normally become repayable
- Understand how the plan may affect the property and your beneficiaries
- Have had the opportunity to ask questions before signing
Your solicitor acts for you, not for My Later Life or the lender. This independence is an important safeguard.
Once the solicitor is satisfied that you understand the arrangement and wish to proceed, the mortgage documents and solicitor’s certificate can be completed.
STAGE 7
Final Documents and Lender Requirements Are Dealt With
Your solicitor sends the required legal paperwork to the lender’s solicitor or legal team. They may raise further questions or request additional evidence before agreeing that the application is ready to complete.
Examples can include:
- Clarification of something shown on the property title
- An up-to-date redemption statement for an existing mortgage
- Evidence that a restriction or old charge can be removed
- Leasehold information
- Buildings insurance details
- Documents required by a condition in the mortgage offer
Your solicitor will respond to the legal enquiries and contact you if anything further is needed. Your adviser can help explain the overall progress, but legal questions must be answered by the solicitors involved.
STAGE 8
Completion and Release of Your Money
When the legal work is complete and the lender is satisfied that all its conditions have been met, a completion date can be agreed and the funds requested.
On completion, the lender sends the mortgage money to your solicitor. The solicitor will then normally:
- Repay any existing mortgage or secured borrowing that must be cleared.
- Deduct any agreed legal costs or other completion amounts shown on the statement.
- Transfer the remaining balance to your nominated bank account.
Your solicitor will provide a completion statement explaining the money received and any deductions made.
Do not cancel payments to an existing mortgage lender until your solicitor confirms that completion has taken place and the old mortgage has been repaid.
STAGE 9
Registration After Completion
Receiving your money is usually the end of the active process for you, but your solicitor still has some work to complete.
They will deal with the discharge of any mortgage repaid at completion and apply to HM Land Registry to register the new lender’s legal charge against the property.
Registration can take place after your funds have been released and the time required can vary. Once registration is complete, your solicitor will normally confirm this and deal with the relevant documents in accordance with their procedure.
Read HM Land Registry guidance on registering legal charges.
How Long Does the Equity Release Process Take?
There is no single guaranteed timescale. A straightforward application may complete in a matter of weeks, but the actual time depends on the lender, valuer, solicitors, property title and whether anyone needs further information.
A delay does not necessarily mean there is a problem with the application. It often means that one party is waiting for a document or confirmation from another.
Avoid making irreversible commitments based on an expected completion date. Wait until your solicitor confirms that the funds have arrived and the net balance has been transferred.
What Can Delay an Equity Release Application?
APPLICATION CHECKLIST
Five Ways to Help Things Run Smoothly
- Return requested documents promptly. Check that copies are clear and every relevant section is completed and signed.
- Tell your adviser and solicitor about existing borrowing. Account numbers and lender details can help your solicitor request redemption figures.
- Make appointments as soon as reasonably possible. This includes the property valuation and your face-to-face legal meeting.
- Report any change in circumstances. Tell your adviser if your needs, finances or plans change before completion.
- Ask when you are unsure. A quick question can prevent an incorrect or incomplete response from holding things up later.
“An equity release application involves several organisations, so there can be moments when one party is waiting for another. We believe clients should always understand what stage they have reached, who is dealing with the next step and whether anything is needed from them.”— Graham Clelland, Managing Director, My Later Life
MY LATER LIFE
How My Later Life Supports You
At My Later Life, we believe equity release should be explained clearly, patiently and without pressure.
Our advisers take time to understand what matters to you, consider the available alternatives and explain any recommendation in plain English.
We can help you understand:
- What information the lender needs
- What the property valuation means
- The financial details of your mortgage offer
- Which part of the process is being handled by your solicitor
- What may be holding up an application
- What happens next
Your solicitor must advise you independently on legal matters, but your My Later Life adviser remains available to support you through the overall application journey.
Frequently Asked Questions
Why do I need both an adviser and a solicitor?
Your qualified equity release adviser considers your financial circumstances, the alternatives and product suitability. Your independent solicitor advises you on the legal contract, mortgage documents and effect on your property.
Can I choose my own solicitor?
Yes. You have the right to choose your solicitor. It is sensible to use a firm familiar with lifetime mortgages and the Equity Release Council’s requirements.
Does my solicitor need to meet me face to face?
For a plan meeting Equity Release Council standards, the solicitor providing the required independent legal advice must meet you physically face to face.
How long does equity release take?
There is no guaranteed timescale. A straightforward application may complete in a matter of weeks, but the lender, valuation, legal title, existing mortgages and any additional enquiries can all affect the time required.
Will My Later Life know what stage my application has reached?
We will support you throughout the application and can help explain the overall position. Solicitors and lenders may sometimes need to deal directly with each other, and your solicitor must advise you independently on legal matters.
Can I change my mind?
Tell your adviser and solicitor immediately if you have doubts or no longer wish to proceed. They can explain your position based on the stage reached, including whether any costs have already been incurred. You should never feel pressured to continue.
When should I make plans for the money?
Avoid making irreversible commitments based on an expected completion date. Wait until your solicitor confirms that the funds have arrived and the net balance has been transferred.
The Equity Release Legal Process: The Bottom Line
Your application does not pass through one single organisation from start to finish. Your adviser, lender, valuer and solicitor each complete a different part of the process.
The usual journey moves from application and solicitor instruction through valuation, offer, independent legal advice, final enquiries and completion. Registration at HM Land Registry then takes place after the funds have been released.
The most useful question at any point is: who is dealing with the next step, and do they need anything from me?
Responding promptly can help, but some matters remain outside your control. A delay often means that a document or confirmation is still awaited rather than that the application has failed.
For a broader guide covering the journey before the legal process begins, read our complete step-by-step equity release guide.
“An equity release application involves several professionals, but you should never feel left in the dark. At every stage, you should understand what is happening, who is dealing with the next step and whether anything is needed from you. Our role at My Later Life is to keep the journey clear, supportive and as straightforward as possible.”— Graham Clelland, Managing Director,
My Later Life
Considering Equity Release or Want to Understand the Next Step?
My Later Life can help you understand your options and support you through the lifetime mortgage application process.
Call 0207 100 4255 Use Our CalculatorAbout the author
Graham Clelland
Managing Director, My Later Life
Graham writes about equity release, lifetime mortgages and the financial decisions homeowners and their families may face throughout later life.
Important Information
This article is a general guide. The exact process and timescale will depend on your lender, solicitor, property and personal circumstances.
Equity release will reduce the value of your estate and may affect entitlement to means-tested benefits.
A lifetime mortgage is secured against your home. Interest may be added to the amount borrowed and can compound over time.
Read the MoneyHelper guide to lifetime mortgages.
Read the Equity Release Council guide to the application process.
This is a lifetime mortgage. To understand the features and risks, please ask for a personalised illustration. Check that this mortgage will meet your needs if you want to move or sell your home or you want your family to inherit it. If you are in any doubt, seek independent advice.
