Equity Release Update - September 2013


Continuing with our theme over the previous few months, this month I will be looking at Just Retirement's legal processes and picking out those aspects which may be helpful for you to be aware of.

Just Retirement's solicitors (enact) will write to the client direct to request the existing mortgage account numbers (enact deal with the redemption on completion, not us) and the deeds if the property is unregistered. Enact will write at the outset for these, and it does speed up the process if clients deal with the requests. Clients can, of course, choose to ignore enact and provide me with the account numbers/deeds but it is quicker to deal direct.

You may want to forewarn clients about the volume of documentation that Just Retirement ask the client to sign. The Legal Charge runs to 12 pages (all other lenders issue a 1 page deed) of legal jargon. They also issue two Agreements, which are in effect a repeat of the offer. Again, they run to 12 pages each and are in duplicate. The sheer volume of papers can cause clients to panic.

It is widely acknowledged that Just Retirement cases proceed (for standard straightforward cases) smoothly and quickly. For clients extending their leases enact will want to approve the lease and make in-depth enquiries, which can cause delay.

Unlike Aviva, who write direct to the clients, Just Retirement send the cash back to Ashfords with the completion funds.

Overall, Just Retirement's' legal processes run well, although minor delays do occur near completion as enact obtain redemption statements (they will not accept a redemption we obtain). We encourage clients to contact their lender to send statements to enact without delay.


01.08.2013 - Hodge to launch an interest-only mortgage for those in/entering into retirement. Fixed rate for five years under 5%. The loan will be up to 50% LTV for ages 55-70. Borrowers will need to prove affordability.

01.08.2013 - Newlife has been granted full permission by the FCA to regulate mortgages from completion to redemption. The lender will now operate as a full service provider in the retirement market by administering, as well as funding, lifetime mortgages, home reversion plans and other retirement mortgages.

14.08.2013 - Over 65s have seen a total of £5.3bn added to the value of homes since April. Overall, pensioners live in homes worth £775bn.

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