Documents Needed for Equity Release? Your Checklist

It’s a daunting thought to apply for equity release, and if you don’t know where to begin, you might be feeling overwhelmed. If you’re applying for equity release, you might be wondering what documents you need to gather beforehand. I’ve done the research for you so that your initial equity release appointment goes as smoothly as possible.

So, what equity release documents do you need?

Requirements vary by provider and circumstances. The categories below are a preparation checklist, not a universal list of exactly four required and six optional documents.

What are the four main documents needed?

Commonly requested categories include:

• Proof of identity
• Building insurance schedule
• Bank statements
• Proof of address

Proof of identity

Equity release lenders will need you to prove your identity, in the form of a passport or driving licence to verify you are who you say you are. They need this to confirm they’re lending to the correct applicant, and that there is no fraud or money laundering.

Building insurance schedule

Your equity release provider will need to confirm that your building insurance schedule is up to date and that the property you’d like to take out an equity release loan on is covered properly.

Building insurance confirms to your provider that your property is properly covered against major risks like flooding, fire damage, and even extreme weather. Lenders need to confirm this in case of any unforeseen events that could damage your property value.

Bank statements

The provider may request bank statements for identity, source-of-funds or affordability checks. The period and accepted electronic or paper format vary; ask for the actual requirements.

Products with mandatory payments require affordability assessment. Do not assume every lifetime mortgage needs the same statement period or branch-printed copies.

Proof of address

Proving where you live is another essential document that equity release lenders will want to see. They need to confirm that you’re living at the property you’re taking the loan out against, and also to comply with anti-money laundering regulations.

You can prove your address with utility bills or council tax statements. You can also do this with bank statements, but I’d recommend bringing the other two to back up your claim.

The following additional documents may be required, depending on the title, property and application.

» TAKE ACTION NOW: Find out how much equity you could release

What are the other six documents needed?

Property title deeds

Having your property title deeds at hand will be useful because it confirms your ownership of your property and provides your lender with useful information such as its history, boundaries and any restrictions that are in place.

The title can show mortgages and registered charges or restrictions. A County Court Judgment alone is not automatically a charge on the property; a charging order is a separate step.

Existing secured debts normally need to be cleared at completion, often from the release proceeds. The solicitor and lender will confirm the required discharges.

Mortgage information

If the mortgage on your property is still in progress, your equity release lender will need to see documentation related to these loans, which includes your mortgage policy and provider details.

They need these so that they can understand the terms of your mortgage, see how much is left to pay, and how this could affect any equity release plan they could offer you. Not only that, they will be able to see that you’ve got enough equity available to repay any existing loans against your property.

Note: your equity release provider will need the details of your current mortgage/loan provider to set up the repayment plan.

Solicitor and estate agent details

Providing your solicitor and estate agent details to your equity release provider will help with communication during the equity release process if you’re planning to use the loan to purchase a new property.

Not only that, your solicitor and estate agent may be used during legal processes, and your equity release provider may need to communicate with them at times.

Occupier documentation

If you have tenants living in your property with you, your equity release provider will need information on this in the form of tenancy agreements or any other documents you have. This helps the lender assess any risks that could affect your equity release plan.

Leasehold information

If your property is in a leasehold, your equity release provider will need to see your lease to understand the terms and how long is left on your lease. This documentation will also show them any other restrictions that could affect the property value or even the equity release plan.

An Age Partnership customer’s experience

Individual experiences vary. Equity release is a long-term decision, and specialist advice is needed to assess whether it is suitable for you. Compare the costs, risks and alternatives before proceeding.

Mrs Wareham

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Solar panel documentation

Solar-panel ownership, leases, installation and warranties may affect lender acceptance and property rights. Provide the relevant documents requested by the lender and solicitor.

• A valuer considers any impact on market value; solar panels do not guarantee a particular increase or lending amount.
• Ownership and maintenance – your equity release provider will need this information to confirm you own the solar panels installed on your property. Some properties use third-party providers. If your solar panels are leased, it may affect the property value.
• If you’re on a Feed-in Tariff (FiT) or a Smart Export Guarantee (SEG) – your equity release lender will need to see this information as it may also affect your property value and financial situation.
• Safety – lenders will need to know that your solar panels are safe, properly installed and correctly maintained. Your documentation will need to outline who installed them and all of the maintenance history, including any warranties you have.
• Planning permissions – lenders will also need to see that your solar panels comply with planning permission requirements and building regulations. If they are not, this could lead to legal action and impact your property value.

Failure to provide this documentation could impact your ability to take out an equity release loan against your property. Lenders use this information to determine the value it adds to your home and also whether their investment is worth it.

Ask the adviser, provider and solicitor for their current checklist early so missing information can be addressed.

Remember that choosing equity release is a big decision and shouldn’t be taken lightly. That’s why I’d recommend speaking to a qualified equity release advisor before making your final decision.

The documents help verify identity, ownership, property suitability and any relevant affordability requirements. The exact checklist depends on the product.