Equity Release
What Costs Will I Incur
The fees incurred in equity release will vary depending on the type of equity release scheme, product provider chosen and the value of your home. The following is an approximation of the costs you could expect. Exact fees will always be confirmed in writing by each independent party before you agree to any plan.
Valuation Fee
To assess how much a Lifetime Mortgage or Home Reversion Plan provider will lend you, the lender will normally charge a valuation fee, which on a typical valuation of £250,000 you could expect to pay around £250-275. This is the only fee payable at time of application.
Lifetime Interest Only mortgage lenders may even offer a free valuation service.
Solicitor Fees
To ensure you fully understand your commitment, any SHIP approved equity release provider will insist you appoint an independent solicitor. Typically you can expect to pay around £500 inclusive of VAT and disbursements, but should you need to pay off an existing mortgage or transfer ownership they may charge a little more.
Solicitor fees will advise you if they require any fees upfront or whether they will be deducted from the equity release mortgage money they receive from the lender. It is important that you find a solicitor who is experienced in equity release if you want the plan to be completed as swiftly as possible. If you experience any problems in finding such a solicitor please let us know as we can introduce you to a solicitor who specialisesin Equity Release conveyancing.
Lenders Arrangement Fees
Roll Up Lifetime Mortgage lenders typically charge £599 which can usually be added to the amount you are borrowing. Although if added it will increase the overall cost.
Home Reversion Plan providers do not normally charge for this as it is taken into account on what they offer you.
Interest Only Mortgage arrangement fees will vary depending on type of scheme chosen. Most lenders will usually allow this fee to be added to the loan but this will mean the overall cost will increase.
Our Advice Fee
For researching and arranging the best scheme for you, we will charge a fee on completion up to 2% of the amount released or facility arranged with a minimum of £695*. This will normally be deducted by your solicitor from any money they receive from the lender on completion and forwarded to us so you know that what you receive from the solicitor is all yours to use. (* an administration fee is incorporated into this of £195.00 which is due and payable direct to us, should you cancel or withdraw your application, once an application has been arranged).
Professional Advice
With so many different types of lifetime mortgages, we would recommend that anyone considering releasing equity from their home should seek professional and impartial advice. If you would like to benefit from a free initial home consultation to find out more about a lifetime mortgages or the alternative home reversion plan, and to discuss whether or not an equity release scheme is indeed the right option for you; please complete our ADD LINK TO CONTACTS FORM and we will call you back to arrange a suitable appointment with our specialist Equity Release Consultant Jan Nurden.
