Benefits of specialist equity release solicitors revealed

Published on

Using a specialist solicitor for equity release applications can save consumers on average between 15-20 working days, in comparison to employing a non-panel high street firm, according to analysis from more2life.

The equity release lender said these delays could comprise up to half of the 40 to 50 day average offer validity term, leaving clients likely to face the threat of rising interest rates through no fault of their own.

Using equity release lending figures and more2life’s data on the number of applications processed by non-specialist solicitors, more2life estimates more than £757 million of equity release business has been impacted in this way between Q1 and Q3 2021 alone.

Common issues that cause delays include solicitors using residential processes for equity release mortgages, such as submitting an indemnity policy that lenders cannot accept due to the potential length of the loan. A lack of familiarity among non-specialist solicitors around timelines, special conditions and differing criteria between lenders for various risks, including septic tanks and solar panels, is also a common reason for hold-ups in the process.

Stuart Wilson (pictured), corporate marketing director at more2life, said: “High street solicitors are essential in providing consumer access to legal services and knowledge, however for industries as individual as the equity release sector, today’s data shows that specialist knowledge is essential to completing an application in the best possible time.

“More and more older homeowners are turning to equity release to help boost their retirement income, fund house purchases or help loved ones financially, meaning having an efficient and smooth process in accessing their property wealth is vital. We urgently need to both promote the specialist expertise of panel solicitor firms and develop new tools for educating solicitors on the specific requirements of equity release compared to other forms of mortgage.

“Greater knowledge of the idiosyncrasies of equity release applications will help customers complete on their lifetime mortgage more quickly and achieve the retirement lifestyle they deserve.”

Claire Barker, CEO at specialist equity release solicitor, Equilaw, added: “As with other areas of law, the conveyancing behind an equity release transaction comes with its own set of conditions that need to be met in order for the case to complete.

“Most high street solicitors see one or two cases a year at most which means that they don’t have the systems and processes in place a specialist firm like Equilaw does. This can naturally impact on the speed of the transaction and even lead to some customers finding that they lose the interest rate they were hoping for.”

COMMENT ON MORTGAGE SOUP

We want to hear from you!
Leave a comment and get the conversation started.
You need to register to post, so please login or sign up below.

Latest articles

Carter Jonas warns housing reforms ‘far from sufficient’ to tackle crisis

The government must go further than its initial wave of planning reforms if it...

South London dominates list of most popular London boroughs for buyers and renters

South London has emerged as the capital’s most sought-after area for both buyers and...

Household incomes fall nearly 9% in three years as tax and inflation bite

Households are nearly 9% worse off than they were before the pandemic, according to...

Millions of adults trapped at home as 98% priced out of first homes

Almost five million adults in Britain are unable to move out of their parents’...

Blackstone and Pluto Finance launch £2bn real estate partnership

Blackstone has struck a £2 billion partnership with Pluto Finance to expand its presence...

Latest publication

Other news

Carter Jonas warns housing reforms ‘far from sufficient’ to tackle crisis

The government must go further than its initial wave of planning reforms if it...

South London dominates list of most popular London boroughs for buyers and renters

South London has emerged as the capital’s most sought-after area for both buyers and...

Stability is not a slowdown; it’s exactly what the bridging market needs

So, according to the recent Bridging & Development Lenders Association (BDLA) figures, bridging completions...