Equity Release Process
What Is Equity Release Process & How Long Does It Take?
If you're a homeowner that is over 55 but still struggling to maintain the needs of your lifestyle, then you must engage with a professional financial adviser immediately. Your adviser will help you make plans on how best you can take out a profitable equity release and gather some extra funding to cater to your financial needs.
Just think about it...
Getting an equity release enables you as a homeowner to access financial income by helping you unlock the cash value of equity that's accumulated in your home. Equity release is a more sustainable means to borrow money that you'll only repay after you die or move into permanent residential care.
This article will be your all-inclusive guide on the processes you'll undergo when you apply to get an equity release.
A Guide To Explain The Equity Release Application Process
Before you begin...
You must get an independent and transparent service in which professional advisers will guide you through applying and receiving your equity release. Starting with the initial research and plan selection until you successfully release your equity as the process completes.
#1. Find an Equity Release Advisor
Initially, your journey in the equity release process begins with a free consultation meeting with a specialised equity adviser, who will give you a tailored report reviewing your eligibility, with careful consideration of all your circumstances regarding the products available within the equity market.
Take precaution...
Whenever you deal with financial issues of any form, requiring you to exchange personal information, you must be very cautious in selecting your financial adviser. When seeking equity release advice, you mustn't make any vital decisions over a phone call, neither must you give any sensitive or personal information to a stranger.
Now...
The best way is to choose an equity release firm with a national, local reach, where their advisers can easily visit you, at a time that's convenient and right for you.
#2. Selecting a Plan and Submitting Your Application
Your professional equity release advisor will recommend a plan that's customised to suit your individual needs, and they will provide you with documentation that emphasises all the relevant risks and advantages, along with any fees regarding the equity release plan. When you sit down with your advisor and select an equity release plan, be sure to consider all other alternatives and check the facts on every aspect of the process.
All ready!
The moment you get a clear understanding of the terms, and you agree with the recommendation you get, your equity release consultant will complete your application form, and collect all necessary documentation and identification to go with your application. Then the team will send your profile to your desired equity release broker.
#3. The Valuation Report
Immediately your application arrives, your lender will commit an independent surveyor who will contact you to plan on a mutually convenient valuation for your home. The surveyor will conduct an appraisal of the entire market and determine the current value with its condition for security. Whatever they gather from this report will determine the total amount of equity you will release.
Valuation is vital:
The valuation stage is necessary to find out the actual value of your home so you can receive it's entitled worth. They carry this process out within a week of your application.
#4. Legal Conveyance
Your dedicated equity release solicitor will handle all legal processes for you. They'll arbitrate with solicitors of the lender and complete a questionnaire about you and the home you want to use as leverage.
When the process completes, you'll receive a Solicitor's Certificate alongside an equity release offer from the lender.
#5. The Offer Comes
Immediately the lender certifies that the valuation report rendered by the actuary is meeting the requirements you'll receive an offer for your equity release. They set the proposal to confirm the terms and conditions you must adhere to regarding the mortgage, the interest rate, charges and entire amount you will borrow.
Be aware...
Your solicitor will receive your offer because you must sign it in the solicitor's presence, in a face-to-face meeting.
The equity release go-ahead:
Once you receive the offer, approximately within two weeks after valuation, the broker will send a copy to your chosen solicitor. Only then will your solicitor contact you for a face-to-face appointment to complete the next step.
When your solicitor has completed all legal and regulatory processes with you, and it's up to your satisfaction; your solicitor will begin the conveyance process with the solicitor representing your provider. This is a process that they may complete within four weeks, regarding how complicated your title is.
#6. Completion of Paperwork
As soon as the lender's solicitors complete all necessary checks legally actualising the paperwork, they will put a stamp on the date of completion.
Finally, the money will get sent to your solicitor, who will deduct any charges you incurred. Then, depending upon your preferences, your solicitor will deposit your released equity into your given bank account, or post them through a cheque.
#7. Concluding the Equity Release Process
After the solicitor representing your equity release plan provider is okay with all the processes conducted by your solicitor, they'll set a completion date; the funds will legally get sent to your solicitor from your lender.
Now:
When the funds arrive, your solicitor will immediately deduct all advice and legal fees you owe from the equity release, and then transfer the balance into your bank account. Be sure to repay any other secured debt you may and any charges on your estate.
Enjoy the Proceeds
The moment your account receives the equity release funds, you are free to use them in whatever way you wish.
Get the Most Out of Your Estate
An equity release plan is a meaningful way to access the equity value accumulated in your home and use it.
However...
Equity release has its risks, and thus, before you release any equity from your property; ensure to speaking to your solicitor and financial adviser who will help you evaluate if it's your ideal option. The thoroughly straightforward equity release process will present you with the opportunity to contemplate whether the equity release plan is the best option.
Our main advice is:
Choosing a skilled solicitor, knowledgeable in the field, will make the process more effortless and more comfortable to execute.