If a pensioner has made the decision to proceed with an equity release scheme, he or she will need to have an equity release solicitor to represent him and to handle all of their legal affairs. Most equity release providers are members of SHIP or the Safe Home Income Plans. This organization is the governing body where equity release is concerned.
All members of SHIP must follow its rules and regulations. Where equity release solicitors are concerned, the requirements of SHIP dictate that the legal affairs of equity release can only be handled by a solicitor. SHIP also dictates that one solicitor is not allowed to handle the legal affairs of both the client and the equity release providers. This means that two solicitors are needed to complete any equity release process.
The responsibilities of an equity release solicitor are many. He is responsible for making sure the equity release provider is a valid lender and that all money laundering regulations are adhered to. He is also responsible for confirming that the client is complus mentus which means that he is fully aware of the terms, conditions, and effects of the contract he is entering into.
Equity release solicitors are also responsible for checking that there are no irregularities on the deeds of the property. All communication between the client and the equity release provider must be handled by the equity release solicitor, who liaises with the provider’s solicitor to answer any requests.
In order to complete the equity release process and to request the funds from the provider, the clients equity release solicitor must complete and sign a SHIP certificate which is a confirmation that the client understands the implications of the chosen equity release scheme. This SHIP certificate is needed for the equity release process to be completed.
When choosing an equity release solicitor, the client should check if he is qualified to handle the equity release case since that equity release is a specialized area where the legal paperwork cannot be compared to standard legal paperwork. The client must hire a solicitor whose competence and understanding will provide him with the explanation that he needs to fully understand the equity release process.
