In normal times, it is a requirement that property owners who want to release equity from their property by taking out a lifetime mortgage, must have a face to face meeting with their legal adviser to sign the mortgage deed. But as we all know we are living in far from usual times during lockdown.
Solicitors: Len Boreland, Julie West, Celia Perry, Emma West and Susan Grant
New safeguarding requirements
The Equity Release Council, which exists to promote high standards of conduct and practice in the provision of and advice on equity release which have consumer safeguards at its heart, recognises that in these unprecedented times a face to face meeting is not practical. While the Government advice is to stay at home, the Equity Release Council has relaxed the requirement for a face to face meeting.
Additional safeguarding requirements have been introduced by the Equity Release Council to protect borrowers. They may slow the process down, but they are essential and unless all of them can be met, borrowers will not be able to proceed with the home equity release mortgage.
Virtual meetings
Solicitors must speak to each borrower, if possible by video conferencing, but if this is not possible by telephone at four define stages in the mortgage process.
Once the mortgage offer has been received, the solicitors will advise all borrowers on the terms of the mortgage and provided all borrowers confirm they want to proceed, the solicitors will send the mortgage deed to the borrowers to be signed.
Contactless witnessing
Each borrower’s signature to the mortgage deed must be witnessed:
If the borrower wishes to sign at home, the witnessing must be done by an independent adult who is not related to the borrower and who will not benefit from the loan. The witness could be a neighbour who can witness over the garden fence or through a window. The solicitors will need to satisfy themselves about the identity of the witness by asking the witness to provide documents such as a passport and a recent utility bill. The solicitors will also want to speak to the witness.
If the borrower is able to travel to our office in Leatherhead, we are able to offer a contactless witnessing service.
The witnessing of the mortgage deed must be done observing the social distancing recommendations and must follow strict hygiene protocols eg the borrower and the witness should each use their own pens, should not share a pen and should, remain two metres apart at all time.
Final stage
Once the mortgage deed has been signed by the borrowers and their witness, the borrowers must return it to their solicitors. When the solicitors receive it they will check it has been properly signed and witnessed and will speak to the borrowers again, before sending all the paperwork to the lender’s solicitors for checking before a completion date can be set.
Julie West Solicitors have the experience and expertise to guide borrowers through the legal requirements of a home equity release loan.
Call us on 01372 383273 or email hello@juliewestsolicitors.co.uk for a no-obligation chat.