In-Person Legal Advice Returns in 2025: What It Means for You
Recent regulatory changes mandate in-person legal advice for equity release to ensure consumers fully understand the terms and implications, enhancing protection and informed decision-making for homeowners considering these products.
Last Updated: 04 Apr 2025
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Katherine Read Is a Financial Writer Known for Her Work on Financial Planning and Retirement Finance, Covering Equity Release, Lifetime Mortgages, Home Reversion, Retirement Planning, SIPPs, Pension Drawdown, and Interest-Only Mortgages.
Bert Hofhuis Is a Founder & Entrepreneur Simplifying the Complexities of Later Life Planning. He Navigates the Intricacies of Equity Release, Lifetime Mortgages, Reverse Mortgages, and Wealth Management With Clarity and Expertise.
Francis Hui Is Senior Risk Manager With a Wealth of High-Level Experience Across the Industry, and a True Expert at Helping UK Citizens Make Smart Financial Decisions and Manage Risk.
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The ERC Has Reinstated Face-To-Face Legal Advice for UK Homeowners Seeking Equity Release. Learn Why This Is So Important…
Key Takeaways...
The Equity Release Council reinstates mandatory face-to-face legal consultations to ensure borrowers fully understand equity release implications, clarifying the complex details of equity release and providing clearer, more personalised advice.
Professional guidance is essential to avoid common pitfalls like unexpectedly high interest rates or concealed fees in equity release agreements.
This move aims to prevent misunderstandings and ensure that borrowers are well-informed about their financial decisions regarding equity release.
Compulsory in-person legal advice returns for equity release in the UK in response to concerns that telephone or online advice may not provide sufficient protection or support for homeowners.
Face-to-face equity release legal consultations were paused during the Covid-19 pandemic.
In April 2022, the Equity Release Council reinstated it's mandatory requirement of at least one in-person consultation for borrowers with an independent solicitor.1
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The funds from an equity release loan can be received either as a lump sum or in smaller, ongoing amounts.
However, it is important to note that the loan, plus any interest, is usually repaid from your estate upon your passing or when you enter long-term care.
The legal professional must have a deep understanding of equity release schemes and their implications.
They should explain all legal jargon and terms involved, discuss the potential risks and benefits, and clarify how equity release may affect your estate and your beneficiaries.
This compulsory in-person legal advice is not just a box-ticking exercise but a vital step to protect consumer interests.
Is Equity Release Legal Advice Compulsory?
Yes, equity release legal advice is compulsory in the UK.
In fact, the Equity Release Council stipulates in it's rules that anyone entering into an equity release agreement must get independent legal advice.2
Why Is Legal Advice Essential With Equity Release?
Legal advice is essential with equity release because it helps homeowners understand the legal implications of the arrangement between them and the provider.
It also protects their interests and ensures that the legal obligations of both parties have been explained and are being met.
Why Did the Equity Release Council Reinstate In-Person Legal Advice for Equity Release?
The Equity Release Council reinstated in-person legal advice for equity release to ensure that borrowers get the same level of protection as they did pre-pandemic.
The requirement of independent legal advice for borrowers was introduced when the first industry standards were launched in 1991.
It became compulsory in 2013 that at least one consultation with a solicitor must be face-to-face.3
When Was In-Person Legal Advice Reinstated?
In-person legal advice for equity release was reinstated in the UK in April 2022 following the easing of COVID-19 restrictions.4
It is crucial for those considering equity release to seek expert legal advice to ensure they fully understand the terms and conditions of their agreements. Doing so in person makes it easier to discuss the finer details openly.
Common Questions
What Is the Importance of In-Person Legal Advice for Equity Release Returns?
In-person legal advice for equity release returns is crucial to ensure that homeowners fully understand the terms and conditions associated with this financial product.
It provides an opportunity for individuals to seek personalised advice, tailored to their specific circumstances, which helps protect their interests and make informed decisions.
By consulting with a legal professional, homeowners can navigate the complexities of equity release, ensuring they understand the potential impact on their finances, property, and inheritance, ultimately safeguarding their financial future.
How Does Compulsory In-Person Legal Advice Affect Equity Release Returns?
This mandatory step ensures that homeowners receive expert guidance to fully comprehend the implications of releasing equity from their property. By engaging in face-to-face consultations, individuals gain a deeper understanding of the risks, costs, and potential impact on their financial situation.
This process helps homeowners make well-informed decisions, ensuring they are aware of all the factors that may affect their equity release returns.
Why Is In-Person Legal Advice Compulsory for Equity Release Returns?
In-person legal advice is compulsory for equity release returns to safeguard the interests of homeowners. It ensures that individuals fully understand the legal and financial implications of releasing equity from their property.
By engaging in face-to-face consultations, individuals have the opportunity to ask questions, clarify doubts, and receive tailored advice specific to their circumstances.
This requirement helps protect vulnerable homeowners, ensuring they are not coerced into making uninformed decisions that may have long-term consequences.
In-person legal advice provides a necessary level of protection and transparency within the equity release market.
What Impact Does Legal Advice Have on Equity Release Returns?
Legal advice plays a crucial role in shaping equity release returns by providing homeowners with a comprehensive understanding of the product and it’s associated risks.
Legal advice also ensures that homeowners are aware of any potential contractual obligations, fees, and charges that may affect the overall returns of their equity release.
Can Equity Release Returns Be Obtained without In-Person Legal Advice?
No, equity release returns cannot be obtained without in-person legal advice.
In the UK, it is a regulatory requirement for homeowners to engage in face-to-face consultations with legal professionals before proceeding with equity release.
This ensures that individuals fully understand the terms, conditions, risks, and potential impact on their finances.
By making in-person legal advice compulsory, the authorities aim to protect homeowners and prevent any potential exploitation or uninformed decisions that may adversely affect their equity release returns.
Does Telephone or Online Legal Advice Hinder the Equity Release Process?
Yes, telephone or online legal advice may hinder the equity release process because it may not be adequate for the solicitor to determine whether the borrower is mentally competent or fully understands the legal implications of equity release.
The solicitor must also check your identity, which is preferable in person.
How Did the Pandemic Impact Legal Advice and the Equity Release Market?
The pandemic impacted legal advice and the equity release market as restrictions made it more difficult for homeowners to access in-person consultations, leading some providers to offer telephonic or online advice instead.
As a result of the lockdown, fewer equity release customers took advantage of their property wealth in 2020, with £3.89bln being released by new and returning customers, compared with £3.92bln in 2019 and £3.94bln in 2018.
The disruption of the Covid-19 pandemic saw 57% of lending activity concentrated in the first and final quarters of 2020.4
How Do I Find an Equity Release Solicitor?
You can find an equity release solicitor through various online directories, including the Equity Release Council and The Law Society.
Here are a few ways to find an equity release solicitor:
Ask for recommendations from friends, family, or colleagues who have used an equity release solicitor.
Consult online directories to help find a solicitor in your area who specialises in equity release, including The Law Society5 and the Solicitors’ Regulation Authority.6
Contact the Equity Release Council, which maintains a list of solicitors who specialise in equity release in your area.7
What Are Other Important Considerations About Legal Advice and Equity Release?
Other important considerations concerning legal advice and equity release include the need for another solicitor if others are living permanently on your property or if the equity release is part of a divorce settlement.
If family members or lodgers live on your property and are 17 or over, they must sign an ‘occupier’s waiver’ form.8
The occupiers will probably need to obtain a solicitor for legal advice and to act as a witness for the document signing.
If equity release is used as part of a divorce settlement, both parties must have their own solicitor.
Can I Choose My Own Equity Release Legal Adviser?
Yes, you can choose your own equity release legal advisor.
In fact, equity release providers are required by law to recommend that borrowers seek independent legal advice from a solicitor of their choosing before entering into an equity release agreement.
The solicitor you choose should be qualified to provide legal advice on equity release and have experience in the field.
They will review the agreement’s terms and conditions, explain the arrangement’s legal implications, and ensure that the lender meets all legal requirements and obligations.
It is important to note that the solicitor’s fees will be your responsibility, not the equity release provider’s.
The fees can vary depending on the solicitor and the complexity of the case.
What Questions Should I Ask My Equity Release Legal Adviser?
What are the legal implications of the equity release arrangement?
Your solicitor can help you understand the legal implications of equity release, such as the impact on your estate and inheritance.
What fees will I incur?
Your solicitor will provide a breakdown of their fees and other expenses, such as valuation and surveyor costs.
What happens if I change my mind or want to cancel the agreement?
Your solicitor can explain the process for changing your mind or cancelling the agreement and any associated costs.
What protections do I have as a borrower?
Your solicitor can explain the protections in place for borrowers, such as those provided by the Equity Release Council.
In Conclusion
With so many equity release opinions out there, it is essential that you seek independent legal advice from a qualified professional before making any decisions if you are considering equity release.
It allows for a more personalised and comprehensive service, ensuring you fully understand the terms and conditions of the agreements.
The disruption of the Covid-19 pandemic forced the market into innovative ways of working, but as compulsory in-person legal advice returns for equity release, it is back to business as usual.
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