Equity Release Costs

1. Arrangement Fees

Most lenders will charge an arrangement fee when setting up your equity release plan. These fees can vary depending on the lender and the specific product you choose. At AIMS-NI, we’ll help you compare fees across over 20 different lenders to ensure you’re getting the best deal possible. On average, arrangement fees range from £500 to £1,500.

2. Legal Fees

You’ll need a solicitor to handle the legal aspects, such as reviewing the terms of the scheme and ensuring you understand the contract. Legal fees typically range between £800 and £1,500, depending on the complexity of the process. Our advisors can recommend trusted solicitors in Northern Ireland who are experienced in equity release transactions.

3. Valuation Fees

Lenders will require a valuation of your property to determine how much you can borrow. The cost of this valuation is typically paid by the homeowner, with fees varying based on the value of your property. These charges can range from £200 to £600. Some lenders may include this as part of the arrangement fee or offer free valuations – another area where we’ll help you find the best deal.

4. Maintenance Costs

As part of your equity release agreement, you remain responsible for the upkeep of your property. This includes ongoing maintenance and repairs. While this isn’t a direct fee paid to the lender, it’s crucial to factor this cost into your overall financial planning.

5. Insurance Costs

You must also maintain adequate buildings insurance on your property throughout the duration of your plan. The cost of insurance will depend on factors like the size, location, and condition of your home, but you can expect to pay anywhere between £200 and £400 annually.

Additional Costs to Consider

Some lenders may charge early repayment fees if you choose to pay off the equity release early. At AIMS-NI, we will discuss all potential scenarios with you, so you’re fully aware of any potential penalties.