Others disagree, pointing to reports in the FCA’s latest annuities review that the average pension ‘pot’ stands at just £17,700 - which doesn’t sound much when the statisticians are also telling us that the average retirement now lasts 20 years!
Moreover baby boomers are celebrating the fact that 60 is the new 40 and looking forward to an active retirement! After benefiting from the long period of house price inflation they are well placed to supplement their meagre pensions and finance their retirement dreams using equity release.
So, I thought this was a good time to consider how law firms support equity release activity.
The Equity Release Council’s Code of Conduct and Rules and Guidance steer the industry - containing specific requirements regarding legal work. The Code of Conduct sets out that the client’s legal work should always be performed by a solicitor of his or her choice. The Rules and Guidance acknowledge that a customer may choose not to instruct their own solicitor and asks that members of the Council when passing on details of law firms to customers should satisfy themselves that the firm has the necessary experience in equity release products.
Equity release specialist brokers should check that the law firm(s) they recommend are members of the Equity Release Council and the Equity Release Solicitors Alliance (ERSA). Also look for firms who hold the Law Society’s prestigious Conveyancing Quality Scheme (CQS) accreditation and confirm that they hold appropriate Professional Indemnity Insurance and the legal professionals hold current practising certificates. In my own firm we publish a Due Diligence Kit on our website containing all of these to make it easy for Brokers.
The Rules and Guidance also require that every customer is seen by a solicitor or suitably qualified lawyer at least once during the equity release process to ensure they have sufficient mental capacity to enter into an equity release contract and they have not been subject to any duress or undue influence. With that in mind work with a law firm that can deliver a service tailored to this – in my firm we offer a unique Solicitor Home Visit Service and lawyers from our specialist panel visit clients in their own home, at a time to suit them.
Our long experience means we are well placed to pick up on any issues of undue influence and capacity and draw to customers’ attention the risks of equity release plans as we are required to do.
If we are on the brink of an equity release boom then it makes sense to work with a specialist law firm who can help you realise the potential of the market and add value to your unique proposition.
