What are the costs of equity release?
There are a number of costs involved in setting up an over 55 equity release scheme. Some are deducted from the money you receive, others are payable separately.
- Valuation Fee: Most lenders pay for the valuation fee. However, if there is a fee then it must be paid when you submit the application.
- Arrangement Fee: This covers the cost to the lender of setting up the equity release plan and is usually from £0 – 700. This is usually either added or deducted from the money you borrow, or you can pay it before your mortgage completes.
- Legal Fees: These are paid to your legal adviser to cover the costs of conveyancing and should be around £750. It is paid when the money is released to you.
- Our Fees: We charge a maximum fee of £1295 which will be payable upon completion of an equity release product. We will also be paid commission from the company that lends you money or buys your home.
- Ongoing commitments: The lender will require you to maintain buildings insurance on your property for the duration of the plan.
Some lenders may offer cashback at completion to cover, or reduce, your total fees.
‘Unable to fault the service provided by 55Plus Equity Release. Everything was explained in detail, with no pressure to take out a policy at any point. Very professional service, which I would recommend to anyone considering equity release.’K Briggs, successful over 55 equity release scheme applicant, Tunbridge Wells, Kent