Mike Spencer, manager for equity release at LMS, said: “Mortgage regulation will not be effective unless it is reinforced with the proper, informed and independent legal advice required by Safe Home Income Plans (SHIP) to protect consumers from possible mis-selling, and intermediaries and lenders from accusations of mis-selling in the future.
Spencer added: “With more and more people relying on the equity in their homes to maintain their standard of living in retirement, it is vital that any regulation of equity release schemes should underline this requirement and make it clear that the solicitor used should have specific training in equity release.”
Dean Mirfin, from equity release specialist Key Retirement Solutions, said: “I always caution clients to make sure the solicitors they are using know enough about these products because otherwise the solicitors are learning on your time and at your expense.”
“There are a number of firms familiar with equity release products,” he said. “Clients should simply test their solicitor’s knowledge, particularly if they are an old friend of the family. Usually, any delays in the process come down to the solicitors not the providers or advisers.”
CML figures show that applications for lifetime mortgages increased by nearly 70 per cent last year, a trend that is expected to continue.
LMS is offering a number of services including a specialist advisory service offering the STARS (Solicitor Tracking and Reporting System). The LMS Equity Release service also includes a website – www.equityreleaseadvice.com – offering consumers unbiased information about the principles of equity release.
Mervyn Kohler, head of public affairs at Help the Aged, said: “We are delighted that LMS is now providing a national service network of solicitors specifically trained in equity release who can guide older people through these transactions.”
