How much do you pay to take out equity release and how does the process work? Mark Gregory breaks down the stages and the exact costs
The Question
I’m after some advice on taking out equity release and the costs involved and wondered if you could help, please. We are planning our finances and would be grateful for some advice on the upfront costs and timescales.
We’d like to release £80,000 on our £250,000 bungalow to pay for home improvements. When we take out the equity release plan will the process work a bit like buying a home – will we need to employ a solicitor?
Also, will any surveys or valuations be required to satisfy the lender? Finally, will there be any fees attached to the equity release plan? My husband and I are both aged in our early 70s.
Mark’s Answer
Thanks for your question – and you’re absolutely right: arranging equity release has similarities with buying a home. There’s a legal process, a valuation, and some fees to consider – but your specialist adviser and solicitor will guide you at every stage.
Based on what you’ve told us (early 70s, your bungalow valued at £250,000, and looking to release £80,000 for home improvements), you should be eligible to apply for a lifetime mortgage, and your goal sounds entirely realistic.
What’s the process?
1. Advice
You’ll receive regulated, independent advice from a specialist (e.g. Equity Release Supermarket advisers). They will assess your full financial picture and recommend the most suitable product from the whole of the market.
2. Valuation
The lender will arrange a free, independent valuation of your property to satisfy lending criteria and calculate how much equity you can release.
3. Formal offer
Once the valuation is accepted, the lender issues a formal offer. You then review this with your solicitor.
4. Legal work
Your solicitor handles legal checks, reviews the offer documents, ensures you understand everything, and confirms identity and title. Equity Release Council rules require a certificate signed after a face-to-face meeting – safeguarding your interests
5. Completion
On completion, funds are transferred to your solicitor, who deducts any fees and then releases the net proceeds to your account.
Types of home improvements covered
Equity release can fund everything from new kitchens, bathrooms to garden landscaping or energy-saving upgrades.
However, for major or structural works (extensions, loft conversions, or structural alterations), some lenders may require:
- Planning permission
- Building regulation approval
- Detailed quotes or architectural plans
Your equity release adviser will explain these requirements and help coordinate with lenders to secure the funds you need.
What are the costs?
Let’s break down the typical costs for a plan like yours:
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Advice fee
At Equity Release Supermarket, our advice fee is £1,495 – but this is only payable on completion. If you don’t proceed, there’s no charge.
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Valuation fee
Most lenders now offer a free property valuation as part of the application.
-
Solicitor fees
Legal fees typically cost around £1,000 including VAT, depending on your solicitor and the complexity of your case. We work with a panel of trusted equity release solicitors, or you’re welcome to use your own.
-
Lender fees (optional)
Some lenders charge an application or completion fee (typically £0–£1,195), though many offer fee-free deals.
-
Disbursements
These are small legal admin costs like Land Registry fees or ID checks, usually under £100.
Need a solicitor? We can connect you with an Equity Release Council-compliant solicitor offering expertise and no-completion-no-fee assurance.
How long does it take?
The full process typically takes four to six weeks, though it can be quicker if your paperwork is in order and there’s no property-related complexity.
At Equity Release Supermarket, we believe in transparent, no-pressure advice – so you’ll always know the costs and process upfront. If you’d like to explore how much you could release, try our smartER comparison tool, or speak to one of our friendly advisers on 0800 802 1051.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
