How long does the equity release process take?

Understanding how long the equity release application process takes.

Deciding to release equity from your home is a big move, and you need to make sure it’s the right one for you. Understanding the equity release application process is key to knowing what will happen and will help you plan for when your money becomes available. Once you've had the necessary financial advice, received a recommendation and made an application, how long it takes to receive your tax-free cash will depend on the type of equity release you choose. With expert financial support, equity release doesn’t need to be a long process.

How long does it take to release equity?

Once you've had the necessary financial advice, received a recommendation and made an application, you could be ready to access the equity in your home within weeks, but it depends on what type of equity release you choose:

Lifetime mortgage: A lifetime mortgage may or may not involve making regular payments – this is up to you and the type of product you choose. Interest is added monthly or annually and the loan is paid when you die or move into long-term care. The application process for a lifetime mortgage usually lasts between four to six weeks.
Home reversion plan: The alternative equity release plan is called home reversion. This means the provider buys all or a share of your property in return for regular income or a lump sum. You have the right to live in the property rent-free until you die or move into long-term care. At this point, the provider will receive their share of your home’s value, based on the agreement you made. As long as the title on your house is clear, applying for home reversion takes around six to eight weeks.

You should also be aware that any complications discovered during the equity release application process may delay the release of funds and so it's important that you trust the provider you're working with to resolve these as efficiently as possible.

There are two main steps to the equity release application process: the advice stage and the application itself. We’ll break these stages down in a moment.

How long does the equity release advice process take?

The first step when you’re considering equity release is to seek professional equity release advice, which can involve a few calls or meetings over a couple of weeks. You should find an experienced specialist adviser who can assess if you’re eligible and help you work out your options.

You should consider having two separate sessions with an adviser to give you valuable thinking time. You may want to consider having a friend or family member with you, to make sure you and they fully understand the implications of taking out equity release.

If you don’t have an adviser, you can find one by visiting thepfs.org or unbiased.co.uk.

Saga Equity Release, provided by HUB Financial Solutions Limited, has a team of specialists ready to take your call and answer any questions you might have. Following an eligibility check and an appointment, you'll receive advice from advisers who specialise in equity release and they'll help you understand if it could be the right choice for you.

If after taking advice you decide to take out a Saga Lifetime Mortgage you will need to pay an advice fee of £799. A lifetime mortgage is a loan secured against the value of your home.

Equity release is not right for everyone and will reduce the value of your estate. Saga Equity Release and HUB Financial Solutions Limited are both members of the Equity Release Council. As members of the council, both Saga Equity Release and HUB Financial Solutions Limited follow its Statement of Principles that helps protect customers at every stage of the equity release journey.

How long does the equity release application process take?

Once you've spoken to an equity release adviser, discussed your circumstances, and found out if equity release could be suitable for you, if you would like to go ahead you'll then move onto the application process. This process take about eight weeks, though it may be longer or shorter depending on your circumstances.

Understanding the equity release application process

Here’s what will happen if you’re applying for a lifetime mortgage:

Complete application: Once you're ready to complete an application, your adviser will be able to go through this with you and help you complete the necessary paperwork.
Submit application: When the application is complete, you’ll submit it to the equity release provider. This might be by post, email, or online. You’ll receive confirmation from the provider, who will then instruct a surveyor to value your property.
Property valuation: A surveyor will assess your property so that they can establish its market value. This will take around 30 minutes. Their report may take a few days to be filed with the provider.
Formal mortgage offer: Using the survey and the other information in your application, the provider will issue a formal mortgage offer. This usually takes about 48 hours once the survey has been received, and copies will be sent to you and your solicitor.
Legal advice: It’s a requirement that you receive independent legal advice so once your solicitor receives your offer, they’ll contact you to arrange a meeting to discuss it as part of the equity release conveyancing process. They will also witness the signing of the mortgage deed. This part of the process usually takes about a week.
Additional or outstanding requests: Things sometimes come up during the process that need a little more time to resolve before a completion date can be set. If there aren’t any issues then you will be ready to receive your funds within a few days.
Completion: Your solicitor will let you know when you have completed and will provide details of how your funds are being sent to you.

All the steps in the process are mandatory to complete, and as you can see there is some variation in the time releasing equity might take. By choosing a provider who’s a member of the Equity Release Council and a solicitor with experience in equity release, you’ll ensure that the choices you make are the best ones for you.

Can anything speed up the equity release process?

In some cases issues can arise that will inevitably take longer to resolve, for example properties that are held in a trust, or title deeds where deceased owners are still listed.

Taking time to make sure you have all the required information will help make the process as smooth as possible.

How long the equity release process takes does differ for each case but being open with your expert adviser about any particular deadlines will allow you to set realistic expectations and be satisfied with the time it takes to complete.