Introduction
According to the Equity Release Council, 61% of UK homeowners are interested in unlocking the value tied up in their homes to repay debt, boost their retirement income, support their family, or cover healthcare costs.
Equity Release can provide financial stability in retirement, but it’s not just about the money you’re borrowing. There are several upfront and ongoing costs to consider, and understanding these is essential for making an informed decision.
Think of it like investing in a new boiler for your home. The initial purchase price is just the beginning. In addition to the up-front costs, you need to:
- pay a plumber to install it,
- cover the warranty or insurance costs, and
- pay for its maintenance.
It’s the same for Equity Release. The initial sum is only part of the picture. There are Financial Adviser, valuation, Lender, and legal fees to factor into the initial set-up costs. Generally speaking, the total cost of equity release in the UK typically ranges from £1,500 to £3,000.
In this post, we’ll provide a clear breakdown of the costs involved, giving you the transparency you deserve as you make this important decision. There’s a lot to talk about, so let’s begin by exploring what goes into pricing.
Generally speaking, the total cost of Equity Release in the UK typically ranges from £1,500 to £3,000.
What are the costs of Equity Release?
At Tivoli Legal, we believe that transparency around fees is important so our clients are fully aware of the financial commitments involved in later-life lending. If you’re curious about what makes up the typical Equity Release fee, which ranges from £1,500 to £3,000, we’ve put together a detailed table outlining the various charges below.
Most fees are only payable upon completion, meaning you won’t face upfront costs. Instead, costs are settled once you receive your lump sum. Additionally, we offer our legal services on a “no completion, no fee” basis, ensuring that you only pay when your case successfully concludes (our “no completion, no fee” excludes additional work conducted and disbursements incurred).
Equity Release costs in the UK (2025)
Cost Type | Typical Range | Description / Notes |
Financial Adviser (FA) Fees | £0 – £2,000 (or 1–3% of amount, avg. 2.4%) | A fee for regulated financial advice, required for equity release. Can be flat-fee, percentage-based, or sometimes waived. Varies by provider, case complexity, and loan amount. |
Arrangement/Application/Product Fee | £0 – £1,000+ | Charged by some lenders for setting up the equity release product. |
Home Valuation Fee | £0 – £500+ | Some lenders charge a valuation fee (typically around £500). It may be waived by some providers, but it likely applies if the property exceeds £1 million. |
Lender’s Solicitor Fees | £0 upwards | Fee for the lender’s legal work. Varies depending on property title and complexity. Usually included in the offer. |
Borrower’s Solicitor Fees | £750 – £1,500+ | Legal fees for the borrower’s solicitor. Tivoli Legal’s fees start at £899 (inc. VAT and standard disbursements) for a standard case (registered freehold, applicants are owners with one standard mortgage). |
Standard Disbursements | Included in legal fees | Out-of-pocket expenses paid by the solicitor, which include: Land Registry title & plan, mandatory ID verification, bank transfers, and typical other fees including file archive, registered post etc. At Tivoli Legal, these are included in the quoted legal fee for a standard case. (Many firms charge these as extra legal fees.) |
Additional Disbursements | Varies (case-specific) | May include indemnity insurance, additional searches, leasehold/freehold management, special conditions such as solar panels/private drainage/ shared access, additional restrictions/charges/overages, inherited property, matrimonial transfers etc. These can increase final costs, especially for complex cases. |
Ongoing Interest (Compound) | Varies (e.g., 6% per year) | This is the main ongoing cost. Interest adds to the capital amount borrowed and if no repayments are made can “snowball” over time. |
Insurance Costs | Varies (often £100 – £300/year) | Building insurance is always required and is a standard condition of ALL lenders. Indemnity insurance may be necessary for legal and title risks. |
Early Repayment Charges “ERCs” | Varies | If you repay the loan early or sell the property they may be substantial (where an exclusion does not apply). It is critical that your Adviser knows if you intend this to be a short term loan as there are zero ERC products available. |
Other Fees | Lenders may require, for example, a specialist expert report on an issue bespoke to your property such as septic tank, electrical, trees etc. If your property is leasehold or freehold management often they have fees to provide the lender required information. | |
No Completion, No Fee (our "no completion, no fee" excludes additional work conducted and disbursements incurred). | £0 | Tivoli Legal offer this guarantee on our standard fees: if the process does not complete, you pay no legal fees. |
We understand that’s a lot to think about, but here’s the good news:
Your Financial Adviser will provide you with complete transparency by illustrating how the compound interest of Equity Release can increase over time (more on this later). This allows you to make an informed choice about whether the product is right for your circumstances and how it will impact any inheritance you leave.
The legal costs of Equity Release (Tivoli Legal’s role)
Once you have consulted with a Financial Adviser, understood the costs, and chosen your financial product, that is where we come in. At Tivoli Legal, we are here to guide you through the legal maze and ensure you understand the costs and consequences of taking out a later-life mortgage product.
Transparent, simple pricing
We like to keep our fees for Equity Release legal services simple, so we use all-inclusive pricing.
Our costs start at £899 inc. VAT and standard disbursements. This is based on you having a registered freehold title with no issues (eg applicants on the title) and one standard mortgage.
Standard disbursements include:
- Liaising with your Lender’s legal team
- Reviewing your Lifetime Mortgage Offer
- Land Registry title fees
- Office copies and title plan
- Identification verification fees
- Bank transfer fees
- Search fees
“It was a pleasure dealing with Tivoli, who were consistent, efficient and effective in all my dealings with them – and the price quoted before I signed up is the price I paid!!”
– NS (Tivoli legal client)
Additional legal costs can occur if your case is more complex
While we offer transparent fixed fees, additional costs may arise as your case progresses, but we always keep you informed every step of the way. These expenses or disbursements vary depending on the complexity of your case, and can include:
- Indemnity insurance: If there are missing deeds, restrictive covenants, or planning/building regulation issues that can’t easily be resolved, an indemnity policy may be needed.
- Priority or bankruptcy search: A priority or bankruptcy search may be conducted before completion to safeguard the lender’s position. This search helps identify any potential claims against the borrower that could affect the lender’s security, ensuring that the lender’s interests are protected.
- Third-party witness fee: If the lender requires the solicitor to witness the signing of the Equity Release deed in person at the client’s home (common with vulnerable or elderly clients), travel costs may be reimbursed.
- Leasehold pack fees: If the property is leasehold, the freeholder or management company may charge for providing up-to-date ground rent and/or service charge information.
- Land Registry restrictions or additional registrations: If any issues with the property title need to be addressed, such as a change of name or removal of a restriction, there may be extra Land Registry or legal costs. We cover these initial costs and pass them on to you upon completion, ensuring you have a clear understanding of your financial commitments throughout the legal process.
Legal services we do NOT charge for
At Tivoli Legal, we strive to make the Equity Release process as stress-free and transparent as possible. That’s why we offer a free initial discovery call to answer your questions and provide expert advice at no cost to you.
We also operate on a “no completion, no fee” basis, meaning you won’t pay our standard Equity Release legal fees unless your transaction successfully completes. This approach ensures you can explore your options with confidence, knowing you’re protected from unexpected legal costs if the completion doesn’t proceed as planned.
How does lifetime mortgage interest work?
A lifetime mortgage allows you to unlock money from your home without having to move, provided you’re 55 or over. You retain full ownership and can live there for the rest of your life, with the loan and interest repaid only when your home is eventually sold. The amount you can borrow and how much interest builds up depend on your age at the time and the value of your home.
Whatever the reasons for needing equity release, you can access your money as a lump sum or draw down (where a credit facility is pre-approved and you withdraw funds as needed).
Whichever option you select, our specialist guidance allows you to move forward with complete confidence. Additionally, by checking that your product provider is a member of the Equity Release Council, you have the security of a “no-negative-equity guarantee”. Read more about this in our free Equity Release guide.
However, you will pay compound interest…
Compound interest
The term “compound interest” means you pay interest on both your original loan and any interest that’s already built up. With Equity Release, there are no monthly payments – the interest simply rolls up until your home is sold.
Example: £40,000 released at 6% annual interest
- After 5 years: Your debt would be approximately £53,500
- After 10 years: Your debt would be approximately £71,600
- After 15 years: Your debt would be approximately £95,800
- After 20 years: Your debt would be approximately £128,200
It’s like a snowball rolling downhill. The longer it rolls, the bigger it gets.
As we explained earlier, you can pay off your loan’s interest earlier, but charges may apply.
Penalty-free interest repayments
However, if your lifetime mortgage product meets the Equity Release Council standards, you can make penalty-free partial repayments. usually 10% per annum IF you want to.
Why Equity Release is growing in popularity in the UK
Equity Release is gaining more traction in the UK as homeowners seek to unlock the value tied up in their properties. This shift is largely fueled by factors such as declining pensions, rising living costs, increasing house prices and longer life expectancies, all of which heighten the need for enhanced quality of life and financial stability in later years.
Additionally, significant improvements have been made to Equity Release products, enhancing protections for homeowners through the efforts of regulatory and trade bodies, such as the FCA and the ERC. Borrowing options in later life are now more transparent and flexible, enabling homeowners to access their home equity with confidence and clarity.
With robust safeguards in place, an increasing number of homeowners are exploring the potential of their home equity as a means to achieve improved financial stability and peace of mind during retirement.
As Mark Gregory, Founder and CEO of Equity Release Supermarket, explains:
Equity Release Supermarket
“Changing attitudes and acceptance towards borrowing into retirement have created ongoing demand for these types of products.”
Why choosing a specialist Equity Release solicitor saves you time, stress, and money
Many people assume that working with a specialist Equity Release solicitor is more expensive than using a general solicitor.
At Tivoli Legal, we’re here to challenge that perspective. With over 80 years of specialist expertise in Equity Release, and a cutting-edge, streamlined process, we not only simplify the journey for you but also help you save time, reduce stress, and avoid unnecessary costs in the long run.
“It might take me five minutes to do something that would take someone with less experience much longer, but that’s because it’s taken all those years of learning about what works and what doesn’t. It’s skills, knowledge, and experience you’re paying for.
It’s about what value means to you, isn’t it? Do you want to pay a little bit more and be able to pick up the phone and talk through your worries with someone, feeling confident that they entirely understand what you’re going through?”
– AILSA HESKETH, Tivoli legal founder
How we start every case
Our team begins every case by thoroughly reviewing all of the legal documents related to your case, so we’re quick to spot potential issues. This way, problems are identified and resolved before they can escalate, avoiding costly delays or complications later on. We don’t just react—we anticipate and preempt.
We also guarantee that your case is always managed by a qualified Solicitor, giving you the peace of mind that your biggest asset is in expert, experienced hands.
For example, when a prior client decided to sell their late father’s property, the estate agent recommended a local conveyancing team. Here’s what happened…
A real-life example of the Tivoli difference
One of our clients came to us after a frustrating experience with a local conveyancing team recommended by their estate agent. They were selling their late father’s property in the North West and were assured that the local firm would keep the transaction moving smoothly. Unfortunately, that wasn’t the case.
Instead of working with a qualified Solicitor, they were assigned a paralegal as their main point of contact. The paralegal, who seemed inexperienced, passed on problems the client didn’t understand, leaving them to Google legal terms just to keep up.
The process became so stressful that the client felt unsupported and overwhelmed. At their breaking point, they reached out to Tivoli Legal. From the very first phone call, they noticed the difference.
Here’s what that client kindly shared with us about that experience:
“I reached a point where I felt I was going to keel over if I didn’t change the Solicitor. I phoned Tivoli. Spoke to Ailsa. My goodness, a totally different experience. She answered the phone straight away & listened to me, which can’t have been easy as I was in an emotional tiz, losing my thread more than once. She was empathetic, calm, and professional, and clearly very experienced. Within minutes, I felt like a huge weight had been lifted.
The quote I asked for was delivered to my inbox straight away. It was slightly more than my current conveyancer, but the level of customer service, experience and professionalism were light years ahead.”-GS (client)
Equity Release isn’t an easy decision. You deserve Solicitors who truly understand you and your priorities and why. At Tivoli Legal, we truly care about your experience.
When you work with us, you’ll have qualified Solicitors by your side from day one, someone with expertise in Equity Release who can identify potential issues before they become problems.
With our “no completion, no fee” promise and perfect track record of hitting our deadlines, you can relax knowing you’re in safe hands.
You’re not alone in this journey; we’re here to support you every step of the way.
Will Equity Release affect what you leave behind for your loved ones?
Later-life lending products offer you plenty of flexibility. For example:
- Home reversion plans work differently from lifetime mortgages.
- Although receiving a lump sum is most common, you can choose the drawdown model, where you withdraw smaller amounts over time, if your circumstances require this.
Either method will impact your family’s inheritance, which is why it’s vital that you have an open and honest discussion with them. Keeping this conversation warm and inclusive can really strengthen those family bonds during this important decision-making process.
Whichever option you choose, remember that the cost of Equity Release will impact the rest of your life, remaining in place for your lifetime or until you move into long-term care.
Questions to ask before committing to Equity Release
As we detailed earlier, Equity Release is a decision that will impact you for years to come. After speaking to a regulated financial adviser, you will have a better idea of what to expect. Now, it’s time to gain some additional clarity before proceeding.
- EXPLORE ALL OPTIONS
Are there other options that don’t require a long-term financial commitment? - BENEFITS
Will this impact my benefits, pensions, or taxes? It’s always best to speak to the DWP to confirm this. - EXPERIENCED SOLICITOR
If you are looking for a Solicitor, do they have experience in Equity Release? At Tivoli Legal, we have more than experience: we have decades of expertise and a deep understanding of the later-life mortgage sector. - FAMILY DISCUSSION
What are your family’s overall thoughts? Of course, their opinions matter, but remember, it’s your choice. - FINANCIAL ADVISER
Have you spoken to a regulated adviser? - INTEREST
Do I understand how interest accumulates with Equity Release?
DOWNLOAD OUR EQUITY RELEASE GUIDE, which includes a free decision-making checklist to ensure you make an informed decision.
Equity Release Guide
Unlocking equity: what you need to know before releasing value from your home from a solicitor’s perspective
Take control of your financial future with our comprehensive guide to help cut through the confusion of Equity Release. Complete our quick form.
Here is what you will discover inside:
Benefits of Equity Release
Understand how Equity Release can help with paying off debts, funding your retirement, or utilising it as part of your later-life financial planning.
Equity Release process
Make smarter decisions about your home’s hidden value. Understand the whole process and get answers to the most commonly asked questions.
Equity Release checklist
Complete the form to download our FREE expert guide…
FAQs
As specialist solicitors, do you charge more for Equity Release conveyancing?
Not necessarily. In fact, working with a specialist Equity Release solicitor can often be more cost-effective than using a general solicitor. General solicitors may not be familiar with the complexities of Equity Release, which can lead to delays, errors, or additional costs.u003cbru003eu003cbru003eAt Tivoli Legal, u003ca href=u0022/equity-release-conveyancingu0022u003eour expertise and streamlined processesu003c/au003e ensure that straightforward cases are handled efficiently, saving you time, stress, and potentially money in the long run. Sometimes, cheaper isn’t better—specialist knowledge can make all the difference.
Is all of your advice free?
We offer a u003ca href=u0022/contactu0022u003efree initial consultationu003c/au003e to answer your questions and guide you through the Equity Release process. This discovery call is designed to provide clarity, helping you feel confident and informed about your next steps. It’s also an opportunity to get to know us, understand how we work, and see how we can support you. Whether you choose to proceed with us or decide on a different path, our goal is to ensure you leave the conversation with valuable insights and a clear direction.
What does Martin Lewis think of Equity Release?
Martin Lewis recognises that Equity Release can be a suitable solution for some homeowners, but he is clear that it’s not the answer for everyone. He advises taking the time to speak with a regulated Financial Adviser who can explain the whole picture and the long-term costs.
What is the downside to Equity Release?
Equity Release reduces the value of your estate, which can be passed on to your loved ones. Typically, the interest has a compound effect, snowballing over time, meaning the amount owed can grow significantly. It could also limit your entitlement to means-tested benefits.
What is the catch of Equity Release?
While you will still live in your home and own it, borrowing against your home reduces the value of your estate that you can pass on to loved ones. This is due to compound interest and exit fees that apply.
How much does a Solicitor charge for Equity Release?
Legal fees range from £850 to £1,500, depending on your unique circumstances. At Tivoli Legal, we understand that every case is different, which is why we provide a personalised quote when you feel ready to move forward.
What are disbursements?
Disbursements are the out-of-pocket expenses that we pay on your behalf as your case progresses. Some of these expenses are included in our standard fees, others may be additional costs, depending on the complexity of your case. Disbursements are added to your final bill once your case is completed.
Conclusion
We hope the above post makes the cost of Equity Release clearer for you. Understanding the financial implications is crucial when making such an important decision about your home and your future.
At Tivoli Legal, we prioritise transparency when it comes to costs – there should be no unexpected surprises along the way. Our experienced team will guide you through every expense upfront, explaining precisely what you’re paying for and why.
We’re here to make the legal side as straightforward as possible, so you can focus on what matters: making the right decision for you and your family.
If you have consulted a Financial Adviser and are now ready to seek legal support, please contact us today.