Your Guide to the Equity Release Process in 2024?

What Does the Equity Release Process Entail? Discover How to Apply for Equity Release and How Long the Process Takes. Read On to Get the Answers You Need.
  • Last Updated: 07 Feb 2024
  • Fact Checked
  • Our team recently fact checked this article for accuracy. However, things do change, so please do your own research.


Francis Hui

Key Takeaways

  • Preparing for equity release involves researching providers, defining financial goals, assessing affordability, considering alternatives, and compiling relevant questions for advisors.
  • Professional advice is crucial for navigating the equity release process, ensuring regulatory protection, access to a wider market, and understanding long-term implications.
  • The application process includes initial consultation, tailored recommendations, application submission, property valuation, and a legal process culminating in fund disbursement.
  • The duration of the equity release process varies, typically taking several weeks to months, depending on factors like property valuation and legal proceedings.
  • Understanding equity release terms is essential, focusing on interest rates, repayment options, early repayment charges, inheritance protection, and lifetime tenancy agreements.

Lauded by some and denigrated by others, the equity release process is one you should understand entirely before pursuing it to secure funds for retirement.

Following the September 2022 mini-budget, rising interest rates caused the equity release market to take a big knock in Q1 of 2023.

However, sales began to recover in the second quarter as rates gradually improved, and customers appreciated the flexibility of the latest products.1

If you are interested in equity release, and want to know what the loan application process entails, you have come to the right place. 

In This Article, You Will Discover:

    Every Investor, with its team of professional researchers and writers, has created this concise guide to give you a clear understanding of what to expect. 

    Our findings undergo strict fact-checking and compliance checks to provide you with accurate and useful information, and we regularly update our articles to ensure you have the most up-to-date information.

    The details of the equity release process:

    What Is Home Equity Release?

    Home equity loans in the UK are a financial tool for over-55s, allowing them to unlock their home's equity while retaining residence.

    It's a practical option for enhancing retirement finances or covering unexpected costs.

    This method means the loan, plus interest, is repaid when your home is sold, either in your lifetime or from your estate, ensuring you stay in your home.

    Preparing for Your Equity Release Journey

    Preparing for your equity release journey involves more than just expecting immediate cash. 

    Whilst getting equity release is not a quick-fix solution, there are steps you can take to ensure a smooth and efficient equity release application process

    This section will guide you as you prepare for your initial equity release appointment, emphasising the significance of seeking professional advice and providing a list of ten essential documents you should gather.

    How to Prepare for Your Initial Equity Release Appointment

    To prepare for your initial equity release appointment, approach it comprehensively as the starting point to unlocking your property's funds. 

    Whilst your financial advisor has a responsibility, conducting research beforehand is crucial. 

    Some essential steps to help you make the most of the meeting:

    1. Research and gather information: Thoroughly research equity release, comparing equity release providers and understanding benefits, risks, costs, and limitations.
    2. Define goals and priorities: Carefully consider reasons for equity release, clarifying retirement income, home improvements, or supporting loved ones.
    3. Create a budget and assess affordability: Evaluate your financial situation, establish a budget, and discuss affordability with your advisor.
    4. Evaluate alternative options: Explore alternative financial solutions and assistance programs, discussing them with your advisor.
    5. Compile questions: Prepare a comprehensive list of questions covering interest rates, repayment options, inheritance impact, and concerns.

    Your first appointment serves as an opportunity to gather additional information and evaluate the suitability of equity release based on your unique circumstances.

    The Importance of Seeking Professional Advice

    Currently, it is impossible to obtain equity release without soliciting professional advice first.

    Although you should be careful no matter with whom you deal, this is a great measure implemented by the Financial Conduct Authority (FCA) to ensure that you are in the best possible position to make wise choices.

    Why it is important to consult with a qualified equity release advisor:

    1. Expertise and experience: Advisors specialise in equity release, offering guidance and expertise to navigate the process and find the right product and competitive rates.
    2. Tailored advice: Advisors consider your unique circumstances, providing personalised recommendations aligned with your needs.
    3. Regulatory protection: FCA-regulated advisors provide additional consumer protection, ensuring adherence to industry standards.
    4. Access to a wider market: Advisors have access to exclusive products and lenders, saving you time and effort in research and finding competitive rates.
    5. Long-term implications: Advisors help you understand the effects on inheritance, benefits entitlement, and selling your property, ensuring a comprehensive understanding of risks and benefits.

    Make sure the advisor you consult is a member of the Equity Release Council

    Ten Equity Release Documents You Need to Prepare

    Gathering the documentation you may need when applying for equity release beforehand will save you time later, and expedite the application once your advisor and solicitor formally start the process.

    Ensure you have these ten important documents ready:

    1. Proof of identity: Valid passport, driving licence, or national identity card.
    2. Property ownership proof: Documents establishing your ownership, like a title deed or land registry document.
    3. Mortgage information: Details on outstanding balance, repayment terms, and early repayment charges, if applicable.
    4. Property valuation report: Obtain a report from a surveyor registered with the Royal Institute of Chartered Surveyors to determine the maximum amount you can release.
    5. Proof of residency: Utility bills or bank statements showing your current address.
    6. Financial statements: Recent bank statements, pension statements, and relevant financial documents.
    7. Benefit entitlement information: Documentation of any state benefits or entitlements you receive.
    8. Existing debts and obligations: Copies of credit card debts, loans, and other financial responsibilities.
    9. Legal documents: Include divorce settlements, trust deeds, or power of attorney documents, if applicable.
    10. Will and inheritance plans: Information regarding your will and any inheritance plans that may impact your equity release decisions.

    Having these documents ready in advance will simplify the equity release application process and ensure a smoother experience. 

    However, the requirements for documentation you need to supply will differ from provider to provider, so your advisor will inform you of anything extra you may need to submit.

    Applying for Equity Release

    Applying for equity release entails several important considerations. 

    In this section, we cover key aspects of the application process, including the typical workflow, timeframes, and tips to avoid delays. 

    Additionally, we will discuss eligibility criteria, outlining who is typically eligible for equity release and who may not meet the requirements.

    Equity Release Application Process: Step-by-Step

    The equity release application process involves multiple stages to ensure understanding before signing. 

    A step-by-step overview:

    1. Initial consultation: Meet with an advisor to assess eligibility, discuss options, and address questions.
    2. Recommendation and research: Review the advisor's tailored recommendation, conduct additional research, and seek clarification.
    3. Application submission: Complete the application accurately with your advisor's assistance to avoid delays or rejection.
    4. Property valuation: The lender arranges an independent valuation, which takes a few weeks.
    5. Application approval, offer acceptance, and legal process: If approved, the lender provides the offer to your advisor and solicitor. Your solicitor ensures you understand the terms and guides you through the legal process.
    6. Concluding the process: Your solicitor completes conveyancing, sends signed documents, and requests a completion date. Approved funds (minus fees) are deposited into your account.

    How Long Does the Equity Release Application Process Take?

    The duration of the equity release application process can vary based on factors like whether your valuation is accepted and how long communications with your solicitor take.2

    Typically, how long equity release takes, ranges from several weeks to a few months. 

    For a more accurate estimation, refer to the processing times provided by individual providers or industry reports.

    Some things to keep in mind:

    1. Initial consultation and research: This stage varies in duration, taking days or weeks based on your availability and decision-making process.
    2. Application submission: Submitting the completed application form to the lender typically occurs within a few days, with 48 hours being ideal.
    3. Property valuation: The independent valuation process usually takes a few weeks as the lender assesses your property's value through a surveyor.
    4. Legal process: Conveyancing for equity release can take several weeks, contingent on the expertise of your legal team. It involves document preparation, review, contract signing, and meeting legal requirements.
    5. Offer and acceptance: Once the legal process concludes, the lender presents an equity release offer. Reviewing, deciding, and finalising the fund transfer can take a few days to weeks.

    How to Prevent Equity Release Application Delays

    There are preemptive steps you can take to streamline the processing of your equity release application.

    Consider the following steps for a smooth equity release application:

    1. Gather and organise documentation: Collect and organise the required documents beforehand to ensure easy access during the application process.
    2. Seek professional advice: Work with a qualified and experienced advisor specialising in equity release to minimise application delays and ensure accuracy.
    3. Provide accurate information: Double-check and provide precise and up-to-date information on the application form to avoid potential delays or rejection.
    4. Be responsive and prompt: Respond promptly to requests or queries from your advisor, lender, or solicitor to maintain smooth communication and prevent delays.
    5. Stay informed and ask questions: Keep yourself updated on the application's progress, regularly communicate with relevant parties, and seek clarification when needed.

    Equity Release Eligibility: Who Can Apply?

    Equity release is available to homeowners in the UK who meet specified eligibility criteria. 

    The general requirements to be eligible for equity release:

    1. Age requirement: Most providers require a minimum age of 55, including joint applicants.
    2. Property ownership: You must be the legal owner of a UK property, including second homes and buy-to-let properties.
    3. Property value: Providers have minimum value requirements, typically around £70,000 or higher.
    4. Property type: Most residential properties, including houses and flats, are eligible. Non-standard properties may have additional criteria.
    5. Outstanding mortgage: Existing mortgages must be repaid using equity release funds to give the provider the first charge on the property.

    Of course, the eligibility criteria will vary between different equity release providers. 

    Working with a qualified advisor will help you understand your eligibility for specific products and explore the options available to you.

    Completing the Equity Release Process

    Completing the Equity Release Process marks an important milestone as your application gets approved, bringing you closer to unlocking the funds tied to your property. 

    What happens after approval, including reviewing the offer terms, selecting a suitable solicitor, and exploring the available loan repayment options:

    What Happens After Your Equity Release Application is Approved?

    Although some of these points have already been touched on, there is more about what to expect once your equity release application has been approved.


    1. Offer acceptance: Once approved, carefully review the offer's terms, including interest rates, repayment options, and fees.
    2. Seek advice: If you have concerns, consult your advisor for guidance on aligning the offer with your goals and circumstances.
    3. Legal process: Engage an equity release specialist solicitor to handle the legal aspects. They will review documents, prepare contracts, and guide you through the signing process.
    4. Property valuation update: If needed, an updated property valuation may be required to reflect current market conditions.
    5. Confirmation and fund release: After meeting legal requirements, the provider confirms completion, and funds are transferred to your solicitor, who then releases them to your nominated bank account based on the agreed method (e.g., lump sum or regular payments).

    Understanding Equity Release Offers and Terms

    Understanding equity release offers and terms is vital to ensuring you will never be caught off-guard by any fine print at a later date.

    What you need to know:

    1. Interest rates: The offer specifies the interest rate, which can be fixed or variable. Understanding the rate's competitiveness is crucial as it affects the overall loan cost over time.
    2. Repayment options: The offer outlines repayment choices, such as regular interest payments, partial repayments, or repayment upon property sale. Consider which option aligns with your preferences and financial situation.
    3. Early Repayment Charges: Check for any charges or penalties if you decide to repay the loan early. Understanding early repayment charges and their conditions is vital for future planning.
    4. Inheritance Protection: Some plans offer features to protect a portion of the property's value for inheritance. Review the offer to see if such features are available and their associated terms.
    5. Lifetime tenancy: Equity release plans include a lifetime tenancy agreement, allowing you to reside in the property. Understand the terms, obligations, and restrictions of this agreement.

    Choosing a Solicitor for the Completion Process

    When completing the equity release process, you need to appoint a solicitor or conveyancer to complete all legal paperwork on your behalf.

    Your solicitor will deal with the equity release lender’s solicitors to finalise the equity release loan.

    Some considerations to keep in mind when choosing a solicitor:

    1. Experience and expertise: Select a solicitor with specific experience in equity release transactions for a smooth process.
    2. Professional qualifications: Check their memberships in recognised bodies like the Equity Release Council or the Law Society for adherence to industry standards.
    3. Reputation and references: Research their reputation and seek references to ensure a track record of successful transactions and excellent service.
    4. Clear communication: Choose a solicitor who communicates clearly, explaining legal aspects in plain language for your understanding.
    5. Transparent fees: Inquire about their fees, ensuring transparency and competitiveness. Understand the services included and any additional costs involved.

    Choosing the right solicitor for the completion process is crucial, as it impacts both the timeline and your financial future. 

    Taking the time to make an informed selection is essential for a smooth and secure journey.

    Common Questions

    Is the Lifetime Mortgage Equity Release Process the Same as the Home Reversion Process?

    Will I Have to Pay for an Equity Release Advisor’s Services?

    How Is My Property’s Value Assessed for Equity Release Purposes?

    Can I Take Out an Equity Release Plan If I Still Have a Mortgage on My Property?

    What Happens if I Die Before Repaying My Equity Release Plan?

    Can I Move Home or Sell My Property If I Have an Equity Release Plan?

    How Long Does It Typically Take to Release Equity From My Property?

    Will My Age or Health Affect My Eligibility for Equity Release?

    What Fees and Charges Are Associated With Equity Release?

    How Much Can I Expect to Receive in a Lump Sum or Regular Payments From an Equity Release Plan?

    How Is Equity Release Repaid and What Happens If I Am Unable to Make Payments?

    Is There Such a Thing as an Equity Release Process Calculator?

    Do You Pay Tax on Equity Release?

    In Conclusion

    Equity release is a safe way for homeowners to secure a last-resort financial solution in retirement. 

    However, it is essential to approach the journey with careful consideration.

    From preparing for your initial equity release appointment to understanding the terms of the offer, choosing the right solicitor, and seeing the process through to completion, each step requires attention to detail and thorough understanding. 

    The expertise of an equity release advisor will help guide you through the intricacies of the process, ensuring that you meet the eligibility criteria, gather the necessary documents, understand the costs and terms, and make the right choices for your financial goals.

    So, rest assured that once you have done your own research and enlisted the help of a respected advisor, you can tackle the equity release process with confidence.

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