Equity Release Council launches guide for legal advisers

New guide and vulnerability report set to enhance support for customers

The Equity Release Council has launched a Legal Guide to Equity Release, to ensure customers receive the necessary advice and protection. It also aims to encourage more firms to consider how they can better support equity release customers.

All members of the Equity Release Council – including lenders and equity release solicitors – must abide by its strict set of rules. One of these is for all customers to have at least one in-person face-to-face meeting with a solicitor during the process. 

The role of a solicitor is to ensure their clients understand the risks, implications and specifics of their equity release products. The meetings also enable legal advisers to be certain there is no suspicion of duress or coercion from family members or anybody else who might benefit from the arrangement. 

If vulnerabilities are detected during the legal process, they can facilitate access to specialised support to help clients make informed decisions.

The Equity Release Council’s recent Vulnerability Vigilance Report assessed more than 300 cases identified by legal advisers as being potentially vulnerable. More than three-quarters (78%) were able to move forward with additional support. 

Equity release “a transformative financial solution”

Launched at the Council’s Annual Summit in Westminster on 23 May, the Legal Guide is designed to support legal firms thinking about entering the sector to ensure equity release customers fully understand their rights and responsibilities.

David Burrowes, Chair of the Equity Release Council, spoke about the Council’s new legal guide. Emphasising the importance of independent legal advice in the equity release process, he said: 

“Independent legal advice is an essential part of the process of releasing equity, and it is vital we have the knowledge and skills in place across the legal sector to reflect and support the modern market. 

“Our new guide will help to ensure a common understanding of the role of legal advice and its contribution to ensuring good consumer outcomes. It will also challenge more firms to consider whether they can offer this service to customers and what lessons they might learn from those who already successfully operate in this space.”

Burrowes added that specialised legal advice is especially beneficial for vulnerable consumers, particularly in later life. He said: “Equity release can be a transformative financial solution which, when used appropriately, can provide an important lifeline for pensioners, improve living standards and enhance the lives of their families.”

Claire Barker, CEO of Equilaw, praised the Legal Guide’s launch as a significant industry advancement. She highlighted the importance of solicitors understanding the unique complexities of equity release transactions, which differ from standard remortgages. She said:

“The launch of the Legal Guide to Equity Release is a significant step forward for the industry and our hope is that it inspires best practice from lawyers who want to work in the equity release sector. 

“Lawyers need to be aware that far from being a simple remortgage, equity release transactions require them to advocate on behalf of their client and ensure customers fully understand the implications of their choices as well as the product details.

Since independent legal advice was included as a standard in 1991, Equity Release Council members have helped nearly 650,000 UK homeowners aged 55+ to unlock over £46billion of property wealth. 

You can download both reports from the Equity Release Council’s website:  

• Download the Vulnerability Vigilance Report 
• Download The Legal Guide to Equity Release 

Do you want to discuss the option of equity release?

If you are thinking about tapping into your property wealth with equity release, then do get in touch. Call us on 0808 178 3055 and we’ll arrange a no-obligation appointment with one of our selected advisers, who can confirm your eligibility for equity release and look for the best equity release rates from leading providers. 

Remember, if they do not think equity release is the best financial option for you right now, they will tell you. It is a completely pressure-free opportunity to learn more about how a plan might work for you.

If you’re unable to talk now, request a call back and we’ll call when it’s convenient to you. You can also get a quick estimate of how much money you could unlock from your home with our free equity release calculators.

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn