At the start of the equity release application process, you are required to instruct a legal team to act for you.
1. Case opening
Your legal team will open a case file and provide you with your unique reference number. You will need it whenever you contact them for updates or provide them with information.
2. Welcome pack
You will be sent an introductory pack with information about their service and also some forms to complete:
Equity Release Questionnaire
This form is your acceptance of the firm acting on your behalf and agreement of their terms and conditions. It may seem like there are many questions. However, they are all applicable to your equity release application. They will also allow your legal team to offer the best service to you.
Confirmation of bank details
This form will need to be completed and returned to the solicitor with a copy of your bank statement. This will allow your legal team to carry out their checks against fraud and ensure that when sending the final funds to you, they arrive safely into your bank account.
3. Title deeds check
Your legal team will obtain an official copy of your title deeds from Land Registry. This will provide them with details of your property, together with any mortgage or secured loans against your property.
They will also review the deeds to see if anything else may need addressing that could cause delays in the process. We will explore some of these instances later in the article.
4. Offer
Once the lender makes the formal offer, both you and your legal team will receive separate copies.
This is the point where the legal team start to prepare their legal advice for you.
5. Signing meeting
Regardless of how you opt to receive your legal advice, you are required to have a physical meeting to witness the signing of the mortgage deed.
At this meeting, you will be able to ask any questions that you may have about the legalities of your equity release plan.
Once you and your legal team are happy, you will be asked to sign the mortgage deed.
The signing of the mortgage deed marks the point where you are formally accepting the terms of the equity release.
6. Identity checks
Your legal team must check your identity to comply with Money Laundering Regulations. As above, it is also a legal requirement that they meet with you face to face to witness the signing of the mortgage deed. So often, your legal team will check your ID documents during your face-to-face meeting. Your meeting will usually be arranged once you and your legal team have received your offer, to tie in with signing the mortgage deed.
Your legal team will also require proof of ID and Proof of address and the following documents that may be used:
ID and Age
- Valid Passport
- Valid photocard driving licence
- National identity card (for non-UK nationals)
- Firearms certificate or shotgun licence
- Identity card issued by the Electoral Office for Northern Ireland
- Don't worry if you don't have any of the above photo ID. You will be able to use a valid old-style paper driving licence alongside recent evidence of state or local authority funded benefit (such as housing benefit and council tax benefit or tax credit documentation, pension and educational or other grants).
- Please note that ID documentation must show your full legal name.
Proof of Address
- Bank/Building Society/Credit card statement (dated within the last three months)
- Household or domestic utility bill (dated in the last three months)
- Council tax bill (current year)
Your solicitor will send the signed documents to the lenders' solicitor to review.
7. Requisitions
Once the signed mortgage deed has been sent to the lender's solicitors, they will review the entire case. These final checks are to make sure that all documents are ready for the case to complete (and you to receive your money).
If any questions are raised, the two parties will liaise, and ensure any additional requirements are met, so that all is in place ready for completion.
This part of the process can take a very short, or a very long time to complete. This is another reason why it is crucial that you have a legal team that has handled equity release advice before. It is even better if they are familiar with what specific lenders require!
8. Completion
If you are paying off your existing mortgage with your equity release funds, it will be taken care of for you and paid. Your legal team will also, if instructed, pay any fees due at completion.
You will then receive the remaining funds into your bank account!