Equity Release -How Long Does it Take?

The most popular type of equity release is a lifetime mortgage, which takes around four to six weeks to completion.

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You may be considering releasing some of the wealth in your home to boost your finances, but how long does the process take, and what are the main steps to safely accessing your tax-free equity?

Later Life Finance provide our clients with a detailed lender & plan analysis to ensure your wealth can still be preserved whilst enjoying the benefits of accessing some of your home’s equity. 

We carry out side-by-side Interest projections, and show you the effect of making voluntary payments. We show you how to setup your mortgage up the correct way. 

Book a free call back in our diary below and discuss your plans with our qualified experts. 

No call centres, just straight talking advice, with a full comparison of lifetime, retirement and mainstream mortgages, without any commitment. 

We’re an FCA authorised broker for your peace of mind. 

Take the uncertainty out of the process with genuine experts you can trust to put your best interests first. 

advice@later-life-finance.co.uk

0800 2465228

Updated July 2024 -Author Paul Murphy 

Later Life Finance Limited. 

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How long does it take to get equity release after you apply?

After submitting an equity release application, you can expect a timescale of around 6-8 weeks to arrange a lifetime mortgage and receive your funds. 

Once you’ve received expert advice and established if you are ready to raise money from your home, an application can be made. 

As a specialist broker, Later Life Finance can arrange the entire process. 

We deal with the application forms and liaise with your lender and solicitor to make the journey as smooth as possible for you. 

If you’re considering releasing some of the equity in your home, a dealing with a lifetime mortgage broker is one important factor, but understanding the most cost effective way to arrange the plan is equally important. 

Arranging a lifetime mortgage is a big step, which takes careful research and planning to ensure the selected route is suitable both in the current the longer-term when calculating how much can you borrow with a lifetime mortgage

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  • Lifetime mortgages allow homeowners over 55 to borrow against your home with the option to make voluntary repayments to preserve more of your equity. We are often asked, what are the best lifetime mortgage rates? (Payments are optional) and we have access to the best deals, get in touch for a quotation. 
  • No income or affordability checks to qualify, and takes around 8 weeks to arrange a lifetime mortgage. We have access to the best lifetime mortgage providers to help the process run smoothly with expertise and service. 
  • The money is repaid at the end of your lifetime from the sale of your home. 
  • To check your eligibility and how much equity you can release, try our free equity release calculator
  • Borrow between 20% and 50% of your home’s value, depending on age; enhanced mortgages available for those health problems. 
  • Negative equity guarantee for Equity Release Council members, which ensures you and your estate are fully protected. 
  • Possible to move home and take the lifetime mortgage if moving to a suitable property
  • Drawdown plans available to stage the borrowing over the coming years, providing more flexibility
  • Get professional advice to understand if a lifetime mortgage is suitable. 

How long does the equity release advice process take?

The equity release advice process consists of an initial telephone, video call or face to face meeting depending on your preferences. 

This appointment typically lasts around an hour, and ensures your adviser can help establish suitability and answer any questions you may wish to discuss. 

You may be wondering if lifetime mortgages are a good idea and if they are suitable for your needs.  

We are often asked, what is the difference between a lifetime mortgage and equity release? The answer is simple: They are technically the same concept; a lifetime mortgage is the most popular form of equity release. 

There are many equity release myths which thankfully don’t apply to modern lifetime mortgages.  We explain the pros and cons of each option in detail for complete transparency. 

Our experts will help you navigate your options and explain the pros and cons of each equity release plan. 

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0800 2465228

Or email:

advice@later-life-finance.co.uk

How long does equity release take after valuation?

The equity release application process takes around 6 weeks following the valuation of your home. 

We’ve seen applications complete in much shorter timescales, so it really depends on how quickly the solicitor and lender process the application. 

One of the most important aspects is ensuring your adviser is efficient and will keep your application moving forward. 

To get started with a free quotation service contact us today for a full market review with a qualified equity release adviser. 

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What does the solicitors appointment involve?

Under regulated mortgage rules you need to use a solicitor when setting up a lifetime mortgage. 

The solicitor will ensure you are comfortable with the legal aspect of the mortgage and they also check you’re not under any financial duress from a third party. 

They also deal with the lenders solicitor and receive the funds prior to completion and your receipt of funds. 

As a specialist broker Later Life Finance have access to a full range of equity release solicitors you can use for your lifetime mortgage. 

How much does a lifetime mortgage cost?

Lifetime mortgage costs can be broken down into two categories, setup costs and overall interest costs. 

Setup costs consist of broker and solicitors costs, which are around £1,490 and £800 respectively. 

Interest costs depend on how much you borrow and whether you choose to pay the interest back. 

We provide free initial advice to help you understand all your options, and we supply you with detailed interest projections and quotations to understand the true costs of equity release. 

Speak to our experts on

0800 2465228

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Get Started With A FREE Adviser Call Back & Compare The Whole Market.

Get free illustrations, projections & advice, without any obligation.

Applying for a lifetime mortgage can seem daunting at first.

Securing the best possible solution for your needs is our prime focus as an FCA authorised lifetime mortgage broker. Dealing with genuine experts will help avoid pitfalls later down the line.

The expert advisers at Later Life Finance can help you safely navigate your options and provide a complete start to finish service, with total confidence.

how much equity can i release from my home

Summary

How long it takes to arrange equity release is dependent on your requirements, the broker you choose to arrange your plan, and the legal process. 

Later Life Finance are experts in arranging equity release plans. We understand the process in great depth and can provide guidance and expertise at all stages of the application process. 

To find out how much equity you can borrow with a lifetime mortgage, request a call back for a detailed illustration. 

Lifetime mortgage FAQs

The amount you can release on a lifetime mortgage is usually between 20% and 50% of the home's valuation. This is based on the age of the youngest homeowner and the property type.
If you need to raise more money and have no remaining Drawdown (reserve) Facility, you may be able to take a Further Advance from your lifetime mortgage. This is additional borrowing on top of your existing lifetime mortgage and is subject to the valuation of your home and the balance on your lifetime mortgage.
Equity release companies who adhere to the Equity Release Council codes of conduct offer the option to transfer your lifetime mortgage to a new property if you decide to move. However, certain conditions must be met for the new property to be considered "suitable." A suitable property refers to one that is deemed marketable by the equity release company in the future. For instance, if the new property is located in a flood-prone area, the transfer of the lifetime mortgage may not be permitted. In the case of downsizing to a property of lesser value, you might be required to repay a portion of your lifetime mortgage to facilitate the transfer.
In the case of a lifetime mortgage, you generally do not need to make monthly repayments since the loan, along with the accumulated interest, is settled when your home is eventually sold. Your lifetime mortgage adviser will provide detailed projections of how much you will pay back based on whether you opt to make payments or not.
In the event of you passing away shortly after obtaining a lifetime mortgage, the interest accrued would not have significantly accumulated, resulting in a smaller growth of the debt. If no other homeowner is listed on the lifetime mortgage, the lender requires the mortgage to be settled within 12 months of you passing away. The executors of your will sell the property and utilise the proceeds to settle the debt. The beneficiaries of your estate may opt pay off the debt using cash or a new mortgage and retain ownership of the property. This will depend on factors including your wishes set out in your will, and on whether the property is to be retained or sold, with any remaining equity divided by your beneficiaries. 
Equity release lenders who are a member of the Equity Release Council provide a no-negative equity guarantee. This ensures you will never be required to repay more than the proceeds from the sale of your home to settle the debt. In other words, the lender cannot pursue you for any shortfall between the debt amount and the sale proceeds. This protection is made possible by the no negative equity guarantee, which is upheld by all members of the Equity Release Council. According to this guarantee, the lender is strictly limited to requesting only 100% of the sale proceeds as repayment. They are not permitted to seek additional payment from you, your estate, or your estate beneficiaries.
A typical rate for a lifetime mortgage typically falls between 5.9% and 7%. That said, your rate may be different depending on factors like your loan-to-value ratio and the features included in your plan. It’s important to compare the features of different plans to find the one that best fits your needs.
Lifetime mortgages come with a few risks, such as the possibility of owing more than the value of your home due to accumulated interest. They also require monthly fees and can significantly reduce the amount of inheritance you can pass on to family members. Ultimately, it’s important to consider all of these factors when deciding if a lifetime mortgage is the right choice for you.
Lifetime mortgage interest rates are typically based on your age, the amount of money you need to borrow, and the value of your property. Generally speaking, the older you are and the less you borrow, the lower the rate you can expect. Drawdown lifetime mortgages have interest rates set at the time of further borrowing, whereas the initial lump sum is determined at the time of arranging the plan. So be sure to research what’s out there before making a decision.
Yes, you can pay off a lifetime mortgage early, but there may be fees associated with doing so. Providers have varying levels of early repayment charges which your equity release adviser will discuss with you to ensure you have access to all your options and understand the features and charges. It is best to check with your provider before you decide on the repayment plan.
Lifetime mortgages come in several forms, including lump sum, drawdown and interest-only plans. Each offers different rates and repayment arrangements, so your adviser can tailor the mortgage to meet your needs. Later Life Finance provides access to the whole lifetime mortgage market. We will explain the features, costs and points to consider of each option. This will help you make a balanced decision on the right solution for you.
You can repay an interest-only mortgage with an equity release plan. Lifetime mortgages are the most popular form of equity release and allow optional repayments of interest charges, if you wish. Since monthly repayments are voluntary with a lifetime mortgage, your home is not at risk of repossession if you do not maintain monthly payments.Therefore these plans can be more suitable into retirement years.
An interest-only lifetime mortgage is a type of equity release plan where you can pay the interest off on a monthly basis. This avoids compound interest being added which stops the loan from increasing. This type of mortgage is popular for homeowners who want to maintain equity in the home for inheritance or downsizing purposes.