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How much does equity release cost?

If you’re thinking of releasing some of the equity from your home, it’s good to get an idea of the costs involved so you can make sure it’s the right decision for you.

Surveyor’s valuation

Similarly to taking out a regular mortgage, you need to get a surveyor’s valuation when taking out a lifetime mortgage.

The independent surveyor will complete a report to advise the current value for equity release purposes, sending their report onto the lender.

A RICS registered surveyor will complete this, so it’s completely independent. The survey cost is based on the value of the property, so can vary.

Solicitors’ fees

When a satisfactory valuation is in, the lender will issue an Offer and if you are happy with it, the next step is to proceed with your chosen solicitor. We can suggest a panel of specialist independent equity release solicitors. They’ll make sure everything is in order and take care of all the legal paperwork all the way until your money is released.

If you want to choose your own solicitor, that’s fine too. Ideally it’s best to find one with equity release experience.

Solicitors’ fees again vary, but you'll typically pay around £960 for this service. Speak to your adviser if you wish to add these costs to your lifetime mortgage, as it will increase the amount  owed at the end of the plan due to the effects of compound interest.

Lender’s application fee

Also known as an arrangement fee, this is a one-off cost charged by the lender for arranging the lifetime mortgage. The amount is dependent on the lender, but the fees usually range between free of charge up to £695, depending on the plan recommended.

Advice fee

Mortgage Advice Bureau Later Life advice includes explaining the ins and outs of equity release and answering any questions you have, so you can feel confident that any decision you make is the right one for you and your circumstances. We’re here to make sure you have all the facts and understand your options before you make your decision so will discuss the alternative options that could also provide the funds you need. 
We'll always do what’s right for you, whether that’s taking advantage of some of your property’s value through equity release or not. Mortgage Advice Bureau Later Life offer lifetime mortgage products from a carefully selected panel of providers.

Unless you decide to go ahead, our service is completely free of charge, as our fixed advice fee of £1,295 would only be payable on completion of a plan.

Want to find out more about equity release and how much you could unlock from your property? Try our free online calculator and get results in seconds.

Things to consider

  • Mortgage Advice Bureau Later Life offer lifetime mortggages only, which is a loan secured against your home.
  • We understand equity release isn’t for everyone, and we’ll never say it’s the right option for you unless we’re certain.
  • As part of our advice process, we'll consider whether retirement interest-only (RIOs) and other mortgages may be suitable and can arrange advice on these if appropriate. Advice fee will vary.
  • Equity release will reduce your estate's value and may affect your entitlement to means tested benefits. 
  • A lifetime mortgage may result in limited or no property equity remaining and will reduce your financial options in the future.