How Much Does Equity Release Cost? | Expert Advice from Key

The cost of equity release

In the same way there are costs when you take out a regular mortgage, there are associated costs with equity release.

What fees will you pay?

Surveyor's valuation
Solicitors' fees
Lender's application

Surveyor's valuation

Similarly to when buying a home, a survey must be conducted before you take out equity release. The surveyor will check over your property and send their report to the lender. If you choose to go ahead with Key Equity Release, your property will be valued by an independent RICS registered surveyor, so you can be confident of securing an accurate valuation.

Following a satisfactory valuation, and considering other factors, such as your age, health and lifestyle, you’ll be issued an equity release offer .It's then up to you to decide whether you're happy to go ahead.

Solicitors' fees

If you're happy with the offer and want to go ahead, you'll need to instruct a solicitor. We can suggest a panel of expert independent equity release solicitors. They'll take care of all the legal work on your behalf and make sure everything is in order up until your money is released.

You are, of course, free to choose your own solicitor if you wish, but we always suggest that your case is handled by an equity release expert. For their service, you'll typically pay around £1,250, although that's subject to their criteria.

Lender's application

Again, like when taking out a regular mortgage, you may also be charged an "application" or "administration" fee by the lender.

These fees typically cover set up and legal costs when arranging your equity release plan. The lender decides how much they charge, but application fees usually range between free of charge to £695, depending on the plan recommended.

Our advice

Before you take out equity release, it's crucial you seek expert advice. It's a regulatory requirement. Your application won’t be accepted without it. And that's where we come in.

Our equity release advice is unique to you and your needs, delivered by qualified experts. We take the time to understand you, ensuring we find and recommend the right solution for you.

If equity release isn’t right for you, we’ll tell you

If it is, and you want to find out more, we’ll search the entire product range we have created – guided by Key’s 20 years’ experience in the industry and unique insight from helping over 1 million people decide if equity release is right for them – to make sure we find the plan that suits your needs.

We're with you every step of the way on your equity release journey. You’ll have a dedicated case handler to support you throughout, answering any questions you have and overseeing your application right through to completion.

And remember, all of our expert equity release advice is completely free of charge.

What's the total cost?

The overall fees for taking out equity release are estimated to be in the region of £1,850. But it's also worth noting that not every application will incur the same charges. For example, with some plans, you won’t pay a lender’s application or survey fee. It's important you speak to an expert equity release adviser to find out what you'll pay.

When do you pay your equity release fees?

Even though the fees above cover the entire process, you may be expected to pay them at different times.

Surveyor's valuation
If applicable, this is usually paid with the application

Solicitors'
This is typically paid when you receive your tax-free cash on completion.

Lender's application
If applicable, this is usually paid when your plan begins and you receive your tax-free cash.

Our advice
We won’t charge you for our expert equity release advice or support.

Things to consider

Your specialist equity release adviser will explain:

You have to get advice before releasing tax-free cash from your home - please read all our information and make sure it’s right for you
Key Equity Release offer lifetime mortgages only, which is a loan secured against your home. It will reduce the value of your estate and may affect your entitlement to means-tested benefits
All of our plans meet the Equity Release Council standards and come with several protections, including the no negative equity guarantee, which means you’ll never owe more than your home’s value

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