Fees and Charges
Equity Release Supermarket recognise the importance in providing value-for-money and securing the best deals for its clients. This extends to not only to the ongoing running costs, but also to the set-up costs which can influence the final equity release balance.
Establishing ‘what costs will I incur?’ in setting up an equity release scheme will be determined by the three main parties to the process; the lender recommended, the equity release adviser and the solicitor acting on your behalf. Using Equity Release Supermarket’s economies of scale, each of these expenses prior to the application stage can be kept to an absolute minimum, thus ensuring you receive the maximum net release possible.
Transparent & Cost Effective Charges
Knowing exactly what expenses are to be charged prior to setting up any equity release application is the duty of the equity release adviser providing your recommendation. Equity Release Supermarket document this information in your Client Agreement
and Lenders Key Facts Illustration which are both presented prior
to application. We’ve implemented strict FCA rules & adopted the principles of TCF to provide a ‘customised approach’ to our clients.
Equity Release Supermarket offer a FREE initial consultation which can be either in the comfort of your own home, or over the telephone, whichever suits you best.
There is no obligation to proceed and all advisers offer a friendly, yet informative nationwide service. We would also happily accommodate and recommend your children be party to these conversations, as any release of equity will have an impact on their ultimate inheritance.
Unlike some equity release brokers, Equity Release Supermarket charge NO upfront fees to start your application process. Quite fairly, any advice fees payable are only deducted once your application has completed. In addition, we also provide a ‘No Completion – No Advice Charge’
agreement to all our clients, which complements the same deal offered by our panel of equity release solicitors, whom we can recommend to you as part of a packaged deal.
What Are The Costs in Setting up an Equity Release Plan?
This will be determined by which ‘route to market’ you adopt. As you can appreciate there are greater costs involved in a face-to-face meeting at home, as opposed to a telephone appointment. This can be reflected in your fees. Here, we explain the main areas of expense and some indication of the individual costs: –
An independent survey and property valuation is instructed to calculate the amount being applied for is within lenders guidelines. This serves two purposes; to get a current market value based on a reasonably quick sale and to ensure the property is in good condition and represents adequate security. Should the property not be in suitable condition, the lender may insist that essential repairs be carried out, either prior, or following to completion. Valuation fees are based on the estimated value of the property.
Equity Release Council rules stipulates the homeowners solicitor must be independent of the lenders solicitor. They are responsible for completing the legal aspects on your behalf & meet lender requirements. They will be responsible for redeeming any mortgage or secured loan on your property, usually from equity release proceeds. Equity release solicitors must also witness each client face-to-face to ensure no undue influence exists. Finally, upon completion a SHIP certificate is completed acknowledging criteria has been met. Your solicitor is also important as they have control over the speed of completion. Our equity release solicitors panel have fixed fees starting from £495+VAT & disbursements offering ‘no completion, no fee’.
Most equity release companies rely on charging an application fee to cover their set-up and legal costs for arranging any lifetime mortgage. These can vary between zero upto £995 and can come with options to either deduct the fee from the advance, or add to the loan itself. Remember, if an application fee is added to the loan, then this will also be charged interest on a compounding basis, if no repayments are made. Some equity release companies have specials offers where application fees have been reduced or even waived on application. Check with your local adviser, or visit our latest offers page for further details.
- Lenders Application/Arrangement Fee
Your equity release adviser will usually charge a fee for the services. Equity Release Supermarket charge a fixed fee which is only payable on completion of your plan. We feel this is very competitive and represents excellent value for money compared to other specialists. Our equity release advice fee is necessary to meet regulatory costs, maintain service standards, provide your recommendation and complete the necessary paperwork taking your application through to completion. Our 100% Gold Trusted Merchant Service Award for 2016 from FEEFO is further evidence of our excellent level of service.
- Financial Advice/Intermediary Fee
These are lifetime mortgage schemes and home reversion plans. To understand their features and risks, please ask for a personalised illustration.