Equity Release/
Lifetime Mortgage

Mental Capacity Assessment for Equity Release/Lifetime Mortgage

What is an Equity Release Capacity Assessment?

An Equity Release or Lifetime Mortgage Assessment is an assessment to ensure an individual is able to decide whether or not to purchase an equity release product.

It should be noted that such an assessment is specific to the actual equity release product being considered.

What is included in the Equity Release Capacity Assessment?

Our Equity Release/Lifetime Mortgage Assessments include all the necessary preparatory work and organising the technical side of a remote assessment via video link, the assessment, a report and reading time.

What case law do you use?

Assessments for capacity to purchase an Equity Release/ Lifetime Mortgage fall under the Mental Capacity Act (2005).

What information do you need from me?

We will need a copy of the actual terms of the equity release product being considered as well as the proposed interest rates and any final settlement figures that may be available. Contact us and we will provide you with a copy of our bespoke referral form, which we will happily talk through with you.

What happens in the assessment?

The assessment will take place via video link through the use of a smartphone, tablet, laptop or computer with webcam. This can take place at the client’s home or at a location where they are comfortable. It is not a test and the Assessor will try to make the client feel at ease asking open ended questions about the clients knowledge around the subject of equity release/lifetime mortgages.

The assessment will take approximately one hour.

Why is an Equity Release/Lifetime Mortgage Capacity Assessment necessary?

For many, accessing the equity that is held in their property is an appropriate and well considered decision. However, it is essential that before an individual makes that decision, they fully understand the possible consequences of their actions.

What happens if a client lacks capacity for equity release/lifetime mortgage?

If a person lacks capacity to enter into an equity release agreement, they will not be able to utilise this as a way to access any equity they may have in their property. It may however, be possible for their attorney (under a Lasting Power of Attorney for property and financial affairs) to access this for them, although appropriate legal advice will need to be sought. Although we do not supply such advice we will be able to recommend solicitors in your area that do.

Speak to us if you’d like to find out more about an Equity Release Assessment.