There are a number of costs involved in setting up an Equity Release scheme. Some are deducted from the money you receive, others are payable separately.
- Valuation Fee. This pays for the lender’s valuation of your property and usually comes to around £250 for a property worth £170,000, although some lenders may offer free valuations. This charge must be paid when you submit the application form.
- Arrangement Fee. This covers the cost to the lender of setting up the plan and is usually from £500-700. This is usually either added or deducted from the money you borrow or you can pay it before your mortgage completes.
- Legal Fees. These are paid to your legal adviser to cover the costs of conveyancing and should be between £400-500. They are also deducted from the advance.
- Our Fees. We charge a maximum fee of £995 which will be payable upon completion of an Equity Release product. We will also be paid commission from the company that lends you money or buys your home.