I have been getting a lot of questions about this lately, so here it is broken down. The equity release process goes through the following steps –
1. You will be offered a free personal home consultation that will provide you with all the necessary information about the schemes and will also answer your queries. They will also evaluate your choice and accordingly guide you.
2. They will then go about researching the perfect schemes for you. ( Week 1)
3. In the second week, the consultants will visit you and give you a brief synopsis of the scheme ideal for you. If you give your consent, you will have to fill some important documents. (Week 2)
4. The company will then process your application and will pass it on to the concerned equity release provider. (Week2)
5. The provider of the equity release will then send a local independent valuer to your house to make an independent evaluation of your house. (Week 2-3)
6. You will then receive an offer from the lender which will then be checked by the solicitor. (Week 3-4) The offer will contain the following- 1) The amount the lender is willing to offer. 2) In case of drawdown lifetime mortgage, it will specify the amount of money you can withdraw over a period of time. This will be based on your age or the independent evaluation made by the valuer.
7. Once the solicitor approves of the plan, you will have to visit the company to give your final confirmation. They will then sign the required certificate to the lender to release the amount. (Week 6-7) or (Week 9-10 for home reversion plan)
8. The solicitor then receives the amount. He uses a part of it to pay off the charge on your mortgages and will also deduct the company’s as well as his own commission. The balance that you receive is for yourself. (Week6-8) or (Week 10-12 for home reversion plan)