Applying for an equity release plan is a straightforward process, one that Acumen can help you with from start to finish. In this blog, we give you a step-by-step guide to how the application process works.
Steps 1-3: Illustration, application, valuation
The first step in the equity release process is to obtain a personalised illustration. This will give you a quick and easy comparison of the different providers. You’ll then need to carefully complete your application form because any errors could affect your eligibility. You will also need to pay for a valuation of your property at this stage, which isn’t refundable even if the plan does not go ahead. Acumen always recommend that you have a member of your family (or if this is not possible then a close friend) to be with you in our meeting to support you through your decision.
A surveyor will then visit your home to check its condition and to value it. Any urgent repairs that could affect the value of your home may need to be repaired as a condition of your loan.
Steps 4-6: Offer, conveyancing, completion
Once the property value and condition has been confirmed, you will receive the finalised proposal terms of your plan in an offer. If you decide to go ahead, you will appoint your own independent solicitor, to act for you through the conveyancing process.
This is the process that takes place between your solicitor and the provider for the legal charge to be taken on your property. Checks are made to ensure that the property is a suitable security for the plan and it is possible – although unlikely – that issues may arise at this stage, once the detailed searches have been taken.
Once the legal charge is ready, your solicitor will then arrange completion of the loan. You will then need to sign this legal charge, and a certificate confirming that the solicitor has explained the plan to you. It is important that you are entirely comfortable with the terms of the plan because once it is completed you will no longer have a right to withdraw.
That same day, your cash lump sum will be paid to your solicitors, and they will make arrangements to pass that money on to you.
Equity release is a last resort Equity release is a lifelong commitment, one that Acumen’s financial advisers only recommend after you have exhausted all other options. You should always consider alternative options before equity release, such as one of the following.
- Ensuring that you are claiming all benefits and grants entitlements.
- Moving to a smaller property to release funds.
- Seeking assistance from your family.
To discuss your equity release plans with one of our dedicated team please contact us today on 0151 520 4353 or email [email protected].