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05 April 2020
Issue: 7882 / Categories: Legal News , Profession , Commercial , Covid-19
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COVID-19: Rules modified for equity release

The Equity Release Council modified its advice on safeguards for customers this week, in light of ongoing restrictions on social distancing
The Council’s Standards Board said legal advice can be provided remotely without a physical face-to-face meeting, but solicitors must follow a set approach, combining written advice with documented video or telephone calls, which increase the total number of interactions between customers and legal advisers.

The council said the revised approach would enable legal advisers to ensure the client’s identity is established and the client has mental capacity, is not under duress or coercion, and where more than one party is involved, both agree to enter into the equity release contract.

It said the mandatory physical witnessing of a client’s signature on the mortgage deed can be carried out by an independent adult witness of the client’s choosing, who will also be subject to identity checks and due diligence.

David Burrowes, chairman of the council, said: ‘The new measures have been designed with input from expert solicitors who provide legal advice on equity release transaction across the UK.

‘It is designed to support large and small solicitors to advise safely on equity release at this time. This unique and temporary solution is the result of collaboration and sharing of legal expertise among Council members in challenging circumstances, to ensure consumers’ interests remain protected. The Council will keep this modification under close review until it ceases, when the Government ends its “stay at home” requirement.’

Issue: 7882 / Categories: Legal News , Profession , Commercial , Covid-19
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Sackers—Charlotte Adams & Fraser Sutton

Sackers—Charlotte Adams & Fraser Sutton

Sackers welcomes two new Graduate Solicitor Apprentices

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