On our recent podcast series, we talked about some of the considerations when choosing a solicitor to complete your client’s equity release legal advice. We covered the reasons why clients need an equity release solicitor, the differences between a specialist and a non-specialist equity release solicitor along with details of the process if you choose to instruct a specialist solicitor.
Why do clients need an Equity Release Solicitor?
It is essential all clients taking out a lifetime mortgage receive independent legal advice as part of the process. The Equity release council insist on clients receiving independent legal advice as well as suitable product advice as part of their rules and regulations. Having an equity release solicitor ensures that clients have not just financial advice but also legal advice to inform them of the implications of taking their equity release plan. It also acts as an extra safeguard as they will check that there are no capacity or duress issues at play.
What is the difference between a Specialist and a Non-Specialist Solicitor?
The simple difference between specialist and non-specialist solicitors is that specialist firms concentrate solely on equity release conveyancing and deal with a large volume of cases whereas a non-specialist firm may be a more general property lawyer and only deal with a handful of equity release cases each year. Specialist firms tend to have operated in the industry for many years, for example, at Equilaw we have been advising clients on equity release for over 20 years and have a long history of advising later life clients and dealing with any challenges that may present themselves through the conveyancing process. Non-specialist solicitors may have only recently started advancing in this space and lack the track record of success and inherent knowledge of the equity release market. Their fee structure may also be remarkably different due to the low number of cases they will be dealing with.
What do I need to consider when discussing legal options with my client?
Clients have the option to appoint any solicitor they wish, however it is important to consider the benefits of using a specialist law firm over and above clients simply appointing their local solicitor or conveyancer. Equity release conveyancing is specialist work and often throws up strange and unusual situations and lender requirements that are unique to lifetime mortgages. At Equilaw we have over two decades of experience advising older clients, dealing with all lenders in the marketplace, and completing cases in a quick and hassle-free manner. Our only priority is your client as equity release is all we do.
What happens before instructing a solicitor?
Most specialist equity release law firms have a business relationship or business development team, this gives you the sounding board to speak to somebody before you have even instructed the client about anything related to this case. At Equilaw we often get queries from brokers about potentially tricky cases where they are looking for an overview of the legal process or want answers to specific questions about additional work that may need to be undertaken. Common examples o this are power of eternity cases, and matrimonial transfers.
What do the costs look like?
Most specialist equity release legal firms operate on a fixed fee basis giving clients peace of mind. Here at Equilaw, you have the ability as a broker to obtain a bespoke quote for your clients prior to instructing us, giving your client the confidence that they will not be lumbered with a bill for additional work where the initial work has been underestimated. We understand exactly what needs to be done to reach completion and therefore through efficiency savings we can offer a competitive fixed fee compared to some non-specialist legal firms. If we do need to complete additional work we have a fixed tariff for these too which is generally more competitive than what is available on the high street.
How do I instruct Equilaw to act on behalf of my client?
Here at Equilaw, we offer a variety of ways for you to instruct us, all with the objective of making it as easy as possible for you to do business with us. We have the ability to create a bespoke online partner page for brokers that pre-populates large amounts of data meaning that we can be instructed usually within 60 seconds. We also have the ability to API directly into brokers’ CRM systems meaning we can be instructed even faster, literally at the click of a button. This saves time and ensures data is captured correctly the first time around.
What happens when Equilaw opens the file?
Most specialist equity release firms will have some form of automated file opening system and not require a file to be manually set up by a human for each new instruction received. At Equilaw we have a heavily automated file opening system that not only downloads and checks land registry titles before a human is involved but allows us to set new client files up within 24 hours. This time saving allows us to concentrate on the important client interaction on opening a file and we aim to complete a short questionnaire with your client over the phone once it has been allocated to a case handler. This reduces the amount of paperwork your client will initially receive ensuring they do not feel bombarded with complicated forms.
How would a specialist solicitor deal with a mortgage offer?
Being the largest solicitor in the marketplace solely dealing with equity release legal advice means that we have dealt with tens of thousands of mortgage contracts over the years. We can safely say there is very little that we haven’t seen and we have the experience advising across all of the equity release mortgage lenders in the market. Law firms that advise on equity release contracts less regularly may only have experience with some of the lenders in the market and may be less adaptable to situations where mortgage conditions change or where the lender requires unique special conditions to be complied with.
Does the client have to see a solicitor face to face?
Since lockdown, the equity release council permitted a move away from face to face appointments with clients and authorised clients to be advised remotely to help maintain social distancing guidelines. However, at Equilaw we have managed to keep most of our mobile solicitors on the road and in the large majority managed to advise clients in a face to face manner since March. Take a look at the pros and cons of face to face advice compared to remote legal advice. As legal work is classed as an essential service under the government key worker guidelines we have been able to complete most client signing appointments face to face. Our solicitors are subject to strict risk assessments daily and have adapted to working with the new social distancing guidelines. This is reviewed regularly and the overall client feedback has been extremely positive as it has allowed us to continue to transact business in a straightforward way. At present we are able to see the large majority of clients in a week and in many cases within just a few days. All face to face meetings are being completed on a contactless basis, this means meetings are being held in gardens, driveways or through windows. Clients are fully briefed before this meeting takes place and our solicitors are fully equipped with the relevant PPE. This allows our solicitor to witness the mortgage deed and takes away any hassle for the client in regards to returning this paperwork to us, our solicitor will return the paperwork to our office and upload to our CRM system. The signing appointment can often cause problems for non-specialist solicitors as in many cases local offices have been closed. The remote legal process can increase lead times and cause frustration for the client, especially the requirement for a non-family member to witness the mortgage being signed. By using a specialist equity release solicitor you can remove a lot of these time delays and extra layers of complexity, allowing your case to be completed in a quick and straightforward manner.
What happens if there is additional work to be done?
The long term nature of lifetime mortgages often means that the lender will require additional work to be completed in order to guarantee the quality of the client’s title before they agree to release funds. This additional work may range from registering unregistered pieces of land and titles, dealing with transfers of equity, or ensuring lease solar panels meet lender requirements. We have a whole series of podcasts available on our website that provide a full understanding of what challenges these cases pose as well as an idea of additional costs and what you can do to get these cases completed as quickly as possible. At Equilaw we have an in-house specialist tea of property lawyers that can work on these types of cases meaning that generally, we don’t have to refer more complex work to other solicitors and more importantly means that clients have a sole point of contact and a simple route to completion. It is important to consider the ability of a client’s solicitors to be able to deal with these more complex cases as challenges can often present themselves once the title has been investigated. For more information on how we deal with non-standard cases please get in touch.
What does the completion stage of the process look like?
Once the lender’s solicitors have reviewed the signed documents we would normally receive a completion date within a few days. We realise that there are often fees and associated payments that need to come out of the ER proceeds, so at Equilaw we regularly settle advisor advice fees and make payments to Will or LPA writers so that any fees can be settled for additional services that clients have received. All of these are able to be noted on our instruction form at the outset and we realise the importance of making these payments on completion so that advisors don’t need to waste valuable time chasing advice fees that haven’t been paid. Using a specialist equity release firm will give you confidence that these payments will be paid promptly on completion.
What else should be considered when choosing between a Specialist and Non-Specialist Equity Release Solicitor.
Communication between broker and solicitor is vital, aside from your case handler and members of the business relationship team, we have an online case tracking portal that is key to keeping an eye on your cases 24/7. It allows you access to case updates via desktop or a mobile phone app and you can use this proactively or reactively depending on your preference. If you would like to find out more or to obtain access, please visit our knowledgebase.
If you have any questions relating to this podcast or any of our services then please do not hesitate to get in touch.
