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Claimline Legal has over 13+ years in successful financial claims. We are your No1 choice when it comes to mis-sold Equity Release claims.

mis-sold equity release

We will need:

  • Your contact details

  • Details of the IFA who sold Equity Release

  • Reasons you think it was mis-sold

  • Upload your Equity Release agreement 

  • Sign our Terms & Conditions online

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mis-sold equity release

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Mis-sold Equity Release - what you need to know

Equity release is a way to access some of the value of your home without having to sell it or move out. It is a type of loan that is secured against your property and is usually repaid when you die or enter long-term care. Equity release can provide you with a lump sum, a regular income, or both, depending on the type of plan you choose. There are two main types of equity release planslifetime mortgages and home reversion plans.

mis-sold equity release

A lifetime mortgage is the most common form of equity release. It allows you to borrow a percentage of your home’s value at a fixed or variable interest rate. You can choose to make no repayments, interest-only repayments, or partial repayments during the term of the loan. The loan amount and any accrued interest are repaid from the sale of your home when you die or move into long-term care.

A home reversion plan involves selling part or all of your home to a provider in exchange for a lump sum or a regular income. You can continue to live in your home rent-free until you die or move into long-term care, but you will no longer own your home outright. The provider will get their share of the proceeds from the sale of your home when the plan ends.

However, equity release has some drawbacks and risks that need to be considered carefully before deciding to go ahead. For example, equity release can reduce the value of your estate and affect your inheritance tax liability, your eligibility for means-tested benefits, and your ability to move or downsize in the future. Equity release can also be expensive and complicated. In short, it can work for a few people, but it has been widely mis-sold.

Mis-sold Equity Release - have I been mis-sold equity release?

mis-sold equity release

Like advice for any financial product your Financial Adviser should have made recommendations with your best interests in mind. Fully understand your personal circumstances, future needs, be transparent and ensure you knew all the facts and risks before you signed up. Below are some of the main signs your equity release plan may have been mis-sold.

For a more comprehensive list click here

1. Failure to explain the risks associated with an equity release plan, such as the potential for negative equity and loss of property.

2. Advising an individual to take out an equity release plan without proper consideration of their financial circumstances such as their income, expenses, assets and future needs.

3. Failing to explain the impact an equity release plan can have on an individuals inheritance or estate plan.

4. Pressuring an individual to take out equity release without adequate time for them to understand the risks and giving them time to consider their options.

5. Failure to disclose current and on-going fees and charges. Especially where this affects cumulative interest repayments and the future value of the property.  

6. Failure to disclose the impact the equity release plan will have on any potential inheritance and tax implications. 

Mis-sold Equity Release - claiming compensation

Like any financial claim the process can get complicated and time consuming. You do not have to use the services of a CMC to make your claim and can go direct to the seller and any regulatory body free of charge. 

mis-sold equity release

There are a number of steps involved and some have to allow for each party to investigate and respond which can take weeks or even months.

Claimline Legal has modern claims software which logs and tracks all our client claims meaning nothing gets forgotten.

Contact: You make contact with our trained team and supply the relevant documents

Assessment: Our claims team will determine if you have a valid claim

Claim Submission: If your claim is valid we will submit a full claim to the seller and sometimes the lender 

Investigation: The party responsible and the FOS will investigate and may request additional information

Compensation Offer: If successful an offer is made - the amount will depend upon your circumstances

Appeal: If you are unhappy with the outcome you may be able to appeal the decision

How much compensation could you receive for your mis-sold equity release claim?

If you have been the victim of mis-sold equity release you could be entitled to thousands in compensation. However, the exact amount of compensation depends upon many factors such as the type of equity release plan you took out, the amount of money you have lost and the impact mis-selling it has had on your life. 

Compensation awarded can be made up of direct and indirect costs incurred such as fees and commissions, and loss of interest. Our team will work with you to ensure you receive the right and proper compensation award for your mis-sold equity release claim. 

Mis-sold Equity Release - how popular is Equity Release?

mis-sold equity release

The equity release market in the United Kingdom has seen significant growth in recent years, reaching record levels of activity and lending in 2022. According to the Equity Release Council, 2022 saw 93,421 new and returning customers choosing to access their property wealth via equity release products, up 23% year-on-year. The total annual lending reached £6.2bn, a new high following the 30th anniversary of voluntary regulation being introduced, up 29% from £4.8bn in 2021 and double the £3.06bn seen in 2017. December was the quietest month since before the Covid-19 pandemic.

The first half of 2023 saw a recovery in the equity release market, with £1.36bn of property wealth unlocked by 13,448 new and returning customers. This was slightly lower than the £3.13bn unlocked by 24,952 customers in the first half of 2022. The second quarter of 2023 saw a modest increase in activity compared to the first quarter, with 6,682 new plans taken out, up from 6,766 in Q1. The average loan size also increased slightly from £96,000 in Q1 to £99,000 in Q2.

The Equity Release Council attributes the continued cautious optimism in the market to both innovation and socio-economic factors that maintain demand for equity release. The chair of the Council, David Burrowes, has advised that the rise in interest rates has negatively impacted the popularity of both traditional and lifetime mortgages, but the gap between the two’s rates has narrowed. 

With the “Cost of Living” crisis continuing for the foreseeable future and the cost of accommodation albeit owning or renting rising, the “Bank of Mum and Dad” looks likely to continue to be a popular choice.

Statistics Source: The Equity Release Council.

Mis-sold Equity Release - what can I expect from Claimline Legal?

With over 13+ years in financial claims management we know our stuff. Experienced claims handlers, refined processes and above all a desire to help our clients get justice.

Additionally, we understand this is a sensitive and emotional subject with substantial amounts of your money involved. Our staff are trained to ensure you will be treated with respect and the empathy you deserve.

mis-sold equity release
  • Experienced financial claims service

  • No win no fee*

  • No upfront fee

  • Fixed fee billing - see here

  • UK owned and UK based 

Mis-sold Equity Release - contact us today without any obligation

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