The equity release sector pulled out all the stops to make the first quarter of 2022 a record success. Both a high number and value of equity release deals showed a clear appetite amongst over-55s for unlocking their property wealth to augment their finances in later life.

Yet, with total quarterly lending reaching £1.53bn, a key challenge for our sector now is how we can maintain high quality service levels and fast turnaround times despite the large volume of applications.

New research from more2life has uncovered that using a non-specialist solicitor for equity release can create an extra delay by up to twenty days, leaving both advisers and their clients at risk of exceeding offer validity terms.

Thankfully, there is a way forward: the critical role advisers play in helping clients gather together the documents they need ahead of their equity release application to help keep any delays to a minimum.

The basics: essential documents for every equity release application

1. Photo ID

When it comes to any mortgage application, advisers know an applicant must provide photo ID, but it is also critical that this ID matches the title deed of the property in question.

Advisers will benefit from getting this right early in the process, as it is a key part of the pre-offer stage. However, if the applicant cannot provide a valid government issue photo ID, there is an alternative solution. An ID verification form that has been completed by a professional who has known the applicant for over two years could also be suitable.

2. Building insurance schedule

Just as with a normal mortgage application, a building insurance schedule, which should be effective at completion, and which will need a sufficient sum of money assured that matches the lender’s valuation, should be in place before the application is started.

3. Council tax and utility bills

Evidence of council tax and utility bills should cover the last three months. In the case of joint applications, both names must appear on the bills. All bills must show the property’s address in full. Always remember that a council tax bill is preferable to a utility bill, while other documents, such as a mobile phone bill, are not acceptable.

4. Bank statements

Bank statements given as evidence should cover the last three months and list the client’s name, account number and address

Documents for specific cases

Whilst some key documents are a basic requirement, an applicant’s unique circumstances may make it necessary to share additional information.

5. Title deeds

It’s important to get the title deeds right from the outset. Clients must be the only names listed on the deed, and in some cases divorce, bereavement or deed poll can introduce problems. If the applicant cannot locate their deeds, this could also cause a major delay, as the title will need to be reconstituted and registered prior to completion.

6. Mortgage/charge reference numbers and provider details

Mortgage reference numbers and provider details are also another document to keep in mind. Sharing these with the solicitor alongside the lender application is a proven timesaver. The lender and solicitor can request redemption statements from the very outset, speeding up the application.

7. Solar panel documentation

Although solar panel documentation may not immediately spring to mind as a common document that’s needed, requirements can sometimes present unexpected challenges. If an applicant’s home has solar panels, they must share a receipt and Microgeneration Certification Scheme certificate, or a copy of the lease for the panels.

8. Purchase cases

Application delays are especially troublesome when the equity release loan is used to purchase a property, as these can pose a threat to a wider chain. As a result, applicants will need to confirm details of their solicitor and estate agent early in the process to avoid delays.

9. Occupier documentation

The specific occupier documentation required for a successful and swift equity release process will depend on the lender. However, it’s vital that occupiers in a property sign a waiver and take independent legal advice before an equity release application can take place.

10. Leasehold documentation

On the other hand, some applicants may reside in a leasehold property. In this event, the details of the management company must be provided in equity release applications. If the lease has an insufficient remaining term, the applicant must seek an extension.

Reaching the finish line

Sometimes, delays are simply unavoidable, and it is far better to have a rigorous equity release process than a rushed one. However, by keeping a close watch on important documents and deadlines, advisers are well placed to ensure their client’s claim is processed efficiently.

There is only one way to avoid unpleasant surprises – and that is preparation.

more2life corporate marketing director Stuart Wilson