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How long does equity release take?

How long does equity release take? Knowing how the process works is all-important when assessing your equity release timescale

senior couple sat on couch with laptop wondering how long does equity release take

UK homeowners continue to show interest in equity release. In fact, a recent study by the Equity Release Council, released in May 2024, suggests that more than three in five homeowners would be interested in releasing money from their home.

There are many reasons homeowners over the age of 55 may want to unlock money tied up in their properties. Having an idea of the equity release timescale can play a big part in deciding to opt for this type of borrowing. 

This article will outline the process, how long equity release takes, and hopefully answer some of the key questions.  

How long does equity release take?

Equity release can take around 8 weeks from making an application to receiving your tax-free cash. This timescale can vary based on the circumstances of each case.

What is the process of equity release?

There are five key stages in the equity release application process:

In more detail:

1. Online calculator

For many, the first step will be using a free equity release calculator to find out how much they could release. The calculator on this page can be used to discover whether you may be eligible and if you are, provide an initial estimate of the amount you could release from your home. Once you have this estimate, you might have a clearer picture of the way that equity release could help you to achieve your financial goals.

2. Speak to Responsible Equity Release’s Information Team

If you choose to provide your phone number, Responsible Equity Release, the providers of the Telegraph Media Group Equity Release Service, will get in touch to offer assistance. As lifetime mortgage specialists, they can provide you with an expert and trustworthy equity release advice service.

It is always important that you make decisions armed with the knowledge to fully understand the choice you’re making. This is why your no-obligation call with the Information Team is an important next step on your equity release journey.

They can answer your questions and help you to better understand how equity release works. If you then want to further your enquiry and receive some personalised projections, they can book you a no-obligation appointment with your local fully qualified equity release adviser when you are ready. You are in control so your inquiry will only ever move forward at your pace.  

3. Seek expert advice to cover the options

If you decide that equity release is of interest to you and choose to book an appointment, your adviser will talk you through the process, explain more about releasing equity from your home, and help you to decide if it’s right for you.

They will also be able to create a personalised illustration for you. This will indicate exactly how much you might owe when the loan needs to be repaid, once the last homeowner has either died or entered permanent long-term care. The illustration will also help you to understand how releasing equity will reduce your estate’s value.

Your adviser will also let you know how releasing equity might affect your entitlement to means-tested benefits, as well as give you an indication of the different features available to you and the types of interest rate that you can expect on a lifetime mortgage.

If it is apparent that equity release is the best choice for your circumstances, then your adviser will help to guide you through the paperwork.

If instead it turns out that another option would be best suited to you, then your adviser will be sure to tell you. As part of the process, your adviser will also assess the suitability of traditional borrowing and a product called a retirement interest-only mortgage.

Rest assured that no advice fees are payable to Responsible Equity Release unless and until you complete a plan. All products that your Responsible adviser will recommend will come from Equity Release Council-approved lenders, so you will also benefit from all the safeguards that this entails, including a no-negative-equity guarantee that ensures you will never owe more than the value of your home.

4. Make an application

Your adviser can help you fill out the paperwork and make an application. Once your application is under way, an independent surveyor will be instructed to carry out a valuation of your property. When the lender has issued a formal offer, you will also have a meeting with a solicitor of your choosing to sign any other legal paperwork.

5. Completion

Once you start to approach the completion stage, your lender will set a formal date on which you will complete. On that date, the lender will release funds to your solicitor, and they will transfer it to your nominated bank account.

Note: If you choose to use some of your released equity to pay for your advice fee, then your solicitor can take this before transferring to your account, paying the adviser for you. Once any mortgages or secured loans on your home are cleared and the remaining funds are in your account, you can then go about achieving your financial goals.

How long does each stage take?

Each step of the equity release process can take different lengths of time.

Note: The process differs for each individual and the timescales provided are not guaranteed. Your adviser will keep you in the loop throughout the process and attempt to foresee any delays where possible.

How long does equity release take after valuation?

How long equity release takes after valuation will depend on the specifics of your case. Should the valuation be as expected and a mortgage offer be received, you can expect it to complete around 8 weeks after your application was submitted. This time accounts for the legal advice you will need to receive and the formalities of the process to be finalised.

If your home is valued differently to your estimate, whether that be higher or lower, it could take longer to complete on a plan. This is because your lender might have to reissue an offer to reflect the new property valuation. 

Start your equity release journey today

You can use the calculator below to begin finding out if equity release is right for you. Your free no-obligation assessment via the Telegraph Media Group Equity Release Service will be provided by Responsible Equity Release.

Read more: 

Equity release is only available to homeowners that own a property within the United Kingdom.

By taking money out of your property now, a lifetime mortgage will reduce the value of your estate. A lifetime mortgage may also affect your entitlement to means-tested benefits, but an adviser can walk you through the impact of this if you decide to proceed.

The Telegraph Media Group Equity Release Service is provided by Responsible Equity Release. Responsible Equity Release is a trading style of Responsible Life Limited. Responsible Life Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (https://register.fca.org.uk/) under reference 610205. Only if you choose to proceed and your case completes will Responsible Life Limited charge an advice fee, currently not exceeding £1,690.

The above article was created for Telegraph Financial Solutions, a member of The Telegraph Media Group. For more information on Telegraph Financial Solutions click here.

Information correct at date of publication.