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Equity Release Update - October 2013

Reviews

This month is the last of my reviews of the legal processes of lifetime mortgages, and I will be looking at Partnership. Next month I will review the two active reversion lenders (Bridgewater and Crown) in the sector, and will compare their legal processes.

From my perspective, the Partnership legal processes are not complicated and the documentation comprises of a Mortgage Deed (1 page), the Solicitors certificate and an insurance declaration, none of which are too overwhelming for clients.

Eversheds acts for Partnership and process cases well, and completions appear rapidly.

The only pitfall arrives when a medical report is required. Whilst Partnership issue them in a prompt fashion, cases can stall with doctors failing to complete and return them despite clients chasing. We always advise clients to make an appointment to see their doctor as soon as they know that the report request has been sent to their doctor so they can ensure a speedy return.

Subject to my comments on Doctors' reports, the Partnership legal process is a sound one and has no pitfalls that will cause client consternation.

News

02.09.13 - Voting for the Equity Release Awards opens

03.09.13 - Wonga lent more than the entire equity release sector in 2012 (£1.2bn).

10.09.13 - Research by Saga Equity Release Advisory service reveals that 75% of borrowers take a drawdown product. 59% of borrowers use some of the initial release for home improvements. One third release an average of £6,000 for a holiday, and one fifth give an average of £28,000 to their family.

12.09.13 - LV equity release sales down 14% from £4.3m to £3.7m in the first half of 2013.

19.09.13 - Jon King steps down as MD of M2L.