Thursday, January 29

ERSA formally launches

The Equity Release Solicitors’ Alliance (ERSA) has formally launched today, with each of the body’s members committing to a charter outlining their promise to provide independent, personal level of service in plain English, reports Mortgage Solutions.

Other commitments include that clients will receive a personal consultation, fair and balanced reports in writing, service level agreements, and all members will offer a no-completion, no fee service. For IFAs, ERSA also guarantees that intermediaries will be paid their fees on the day of completion.

ERSA is a group of established law firms which specialise within the area of equity release, which has joined together to promote the need for homeowners to have access to independent, competitively-priced expert legal advice before they take up an equity release plan.

Claire Barker, chairman at ERSA, commented “If current predictions are correct, the equity release market will double in the next five years, and by 2016 it is estimated that 42% of the population in England and Wales will be eligible to take out an equity release plan. With the market expected to grow at such a rate it is essential that all of these consumers are receiving the best possible legal advice before proceeding with a plan.

“Solicitors have to remain independent to ensure that homeowners only take out an equity release product once they have carefully considered the pros and cons of going ahead from an unbiased third party. This will also help to ensure that the future reputation of the industry remains intact.”

Sixty Plus comment: We welcome this development as independent legal advice is integral to the process of arranginging an equity release plan. It will help us to demonstrate to clients those firms that are as committed to equity release as ourselves.

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