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• In-person attendance is our preferred method of assessment, upholding the highest standards in practice.

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• All qualified professionals with health and care management experience.

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Equity Release Mental Capacity Assessment: What It Is, Why It Matters, and How It Works

What is an equity release capacity assessment?

An equity release mental capacity assessment is a structured assessment of whether someone has the mental capacity to decide to enter into an equity release arrangement. In England and Wales, capacity is decision-specific and time-specific. That means a person may have capacity for some decisions, but not others, and capacity can change over time.

Why mental capacity matters for equity release

Equity release is often irreversible, and it can affect:

· Ownership and future sale of the property
· Inheritance and estate planning
· Eligibility for means-tested benefits and care funding
· The ability to move home later
· Ongoing interest, fees, and long-term financial impact

A clear, well-evidenced capacity assessment can help ensure the decision is made freely, with understanding, and with appropriate safeguards.

When is an equity release mental capacity assessment needed?

A capacity assessment may be requested or advised when there are indicators of cognitive impairment or vulnerability, such as:

· A diagnosis (or suspected diagnosis) of dementia, mild cognitive impairment, brain injury, or learning disability
· A history of stroke, delirium, or fluctuating mental health presentation
· Concerns raised by family members, solicitors, lenders, or financial advisers
· Evidence of confusion, memory difficulties, or difficulty following information
· Concerns about undue influence, coercion, or financial abuse
· Complex arrangements, multiple parties, or significant sums involved

Even without a formal diagnosis, a professional assessment may be appropriate where the decision is high-impact and there is any doubt.

What does the assessment look at?

A robust equity release mental capacity assessment will consider whether the person can:

· Understand the relevant information about equity release
· Retain that information long enough to make the decision
· Use or weigh the information as part of the decision-making process
· Communicate their decision (by speech, writing, or any other means)

These are the key functional elements of the Mental Capacity Act 2005.

What information must the person understand for equity release?

To assess capacity properly, the assessor will explore whether the person understands, in practical terms:

· What equity release is, and how it works
· The difference between common products (for example, lifetime mortgages versus home reversion)
· That interest and fees may roll up over time
· How the debt may increase and reduce the value of the estate
· The impact on inheritance and future options
· Whether there are early repayment charges or restrictions
· The alternatives (downsizing, other borrowing, family support, benefits checks)
· The risks, including what happens if circumstances change

The focus is not on whether the decision is “wise”, but whether it is informed and capacitous.

How long does an equity release capacity assessment take?

Most assessments take 60–90 minutes, depending on complexity and the person’s needs. The assessor may also review relevant background information (with consent), such as:

· Medical history and current diagnoses
· Medication list
· Recent cognitive screening results (if available)
· Reports from professionals involved

Where appropriate, the assessor may recommend a follow-up if capacity appears borderline or fluctuating.

Can an equity release capacity assessment be done remotely?

Remote assessments are not always appropriate for high-stakes financial decisions. In many cases, an in-person assessment provides stronger evidence, allows better observation, and reduces risk.

We are often called when other providers undertake these assessments remotely, and they have found them to be inadequate, or 'fail' to cover the required legal test. We always undertake face-to-face assessments.

What is included in an equity release mental capacity report?

A professional report will typically include:

· The purpose of the assessment and the specific decision being assessed
· The legal framework used (Mental Capacity Act 2005)
· The person’s background and relevant history
· The information provided to the person about equity release
· The questions asked and the person’s responses
· The assessor’s analysis of understanding, retention, weighing, and communication
· Any concerns about vulnerability, undue influence, or safeguarding
· A clear conclusion on capacity for the specific decision

If the report is required for legal or lender purposes, it should be written in a clear, court-ready format.

What if the person does not have capacity?

If a person is assessed as lacking capacity to decide on equity release, the next steps depend on the situation. Options may include:

· Reviewing whether there is a valid Lasting Power of Attorney (Property and Financial Affairs)
· Considering whether a Deputyship application is required
· Exploring alternative ways to meet the underlying need (for example, care funding advice, benefits checks, or family support)

If there are concerns about coercion or financial abuse, safeguarding advice may be appropriate.

Choosing the right professional for an equity release capacity assessment

For a defensible assessment, it is important to use an assessor who is:

· Appropriately qualified and professionally registered
· Experienced in Mental Capacity Act assessments
· Skilled in working with older adults and complex presentations
· Able to produce a clear, evidence-based report suitable for solicitors and other professionals

Equity release capacity assessments with Nova Care Consultants

Nova Care Consultants provides mental capacity assessments and court-ready reports across England and Wales, completed by independently registered health and care professionals.

If you would like to discuss an assessment, you can contact our team:

· Website: www.novacare.org.uk
· Telephone: 0333 335 6547
· Email: info@novacare.org.uk

Frequently asked questions

Is a capacity assessment always required for equity release?

Not always. It is usually recommended where there is any doubt about capacity, vulnerability, or undue influence, or where a professional involved needs clear evidence.

Who can carry out an equity release mental capacity assessment?

A range of appropriately trained professionals can assess capacity. What matters is competence, relevant experience, and the ability to evidence the assessment clearly.

Will the assessment stop someone from releasing equity?

The assessment does not “approve” or “decline” equity release. It determines whether the person has capacity to make the decision. If they do, they can decide. If they do not, alternative legal routes may be required.

How quickly can an assessment be arranged?

Timescales vary depending on location and availability. If you have a deadline (for example, a transaction date), it is best to make contact as early as possible.

How to book an assessment

We limit the number of steps you need to take to book an assessment with us. We have three simple steps:

Step 1 : Contact us by email, telephone, online or using the 'book a consultation' link below. You can also purchase an assessment directly. We will ask for essential details about the assessment (or email you our scoping form). We will provide a written quote after the consultation. You can request direct access to our fee guide by clicking here to learn about our fees.

Step 2: It's time to allocate a named consultant. Sometimes, we can combine steps 1 and 2 in one single call. At this stage, we'll ask for either a whole or a part payment to secure your booking. If you're using a solicitor, we may be able to invoice directly. Please check with us.

Step 3: We'll undertake a face-to-face visit at a place and time where the person is most comfortable, affording the person the best opportunity. Sometimes we may need to assess the person again, particularly for decisions that require longevity. We then write the report and email or post it to you, usually within five (5) working days after assessment, or once full payment has cleared.

* As a leading capacity assessment service, we respect the use of technology to aid our assessments, but we disagree that a comprehensive evaluation can be undertaken by remote means alone, and we can never be sure of the individual's circumstances when assessing by a computer or telephone. We therefore do not offer any form of remote-based assessment for our first assessments. We may at times agree to follow up by remote means, but this is assessed on a case by case basis.

Do you have any questions?