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 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 a typical valuation of £250,000 you could expect to pay around £250-275.  This is the only fee payable at time of application.

Ordinary Interest Only Mortgage lenders may even offer a free valuation.

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.

Ordinary Interest Only mortgages may also offer you free legals if you use their own appointed firms.  Otherwise you can expect to pay similar fees as for specialist equity release schemes.

Solicitor fees will normally be deducted from any money they receive from the lender and so doesn't need to be found upfront.

From our experience, it is important 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 specialises in Equity Release.

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 and can vary between typically £499 - £1000 at present.  Once again this can 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 usually 1.5% of the amount released or facility arranged with a minimum of £795.  This will normally be deducted by your solicitor from any money they receive from the lender and forwarded to us so you know that what you receive form the solicitor is all yours to use.

Drawdown Lifetime Mortgage - Further Advances

Whilst all these set up fees can consume typically between £1,800 - £2000, please be assured that should you choose a drawdown lifetime mortgage, these fees are only paid when you set up the first advance.  Subsequent advances will either incur no new fees or just a small admin fee of approximately £90 depending on lender.

"Equity release" includes home reversions plans and lifetime mortgages. To understand the features and risks ask for a personalised illustration.

Further information about equity release

Clicking on any of the following links will allow you to find out more about key information on releasing equity from your home.

What types of schemes are there | How much can I release | How long does it take | Would I qualify | How to request a brochure | How to book an appointment