Lenders, financial advisers, and solicitors increasingly require an independent psychiatric assessment of mental capacity before an equity release or lifetime mortgage transaction can proceed.
We provide fast, independent assessments conducted by independent psychiatrists — not social workers or nurses — with written reports delivered within 72 hours of assessment. Fees from £600 (excl. VAT).
Why Is a Capacity Assessment Required for Equity Release?
Equity release products — including lifetime mortgages and home reversion plans — are complex, long-term financial commitments that cannot easily be undone. The Financial Conduct Authority (FCA) and the Equity Release Council require lenders and advisers to take reasonable steps to ensure that customers have the capacity to understand and enter into such agreements.
Where there is any indication of cognitive decline, dementia, depression, or another condition affecting decision-making, a formal independent capacity assessment is required before the transaction can proceed. This protects both the individual and the lender or adviser from future challenge.
Solicitors acting for borrowers in equity release transactions also have a professional duty to be satisfied that their client has capacity to give instructions and enter into the transaction. Where doubt exists, an independent psychiatric opinion provides the necessary professional assurance.
The Legal Test Applied
For equity release transactions, the assessment applies the two-stage test under the Mental Capacity Act 2005:
Stage 1 — Diagnostic Test: Does the person have an impairment or disturbance in the functioning of the mind or brain? This may include dementia, learning disability, stroke, brain injury, mental illness, or other conditions.
Stage 2 — Functional Test: Does that impairment mean the person is unable to understand the information relevant to the decision; retain that information long enough to make the decision; use or weigh that information as part of the decision-making process; or communicate their decision?
What the Assessment Involves
- A structured clinical interview with the individual (in person or via secure video)
- Cognitive screening where appropriate (using validated tools such as the ACE-III or MMSE)
- Review of any relevant medical history provided
- Application of the MCA 2005 two-stage test to the specific decision
- A written report confirming capacity (or providing a reasoned opinion where capacity is absent), delivered within 72 hours
Who Can Instruct an Equity Release Capacity Assessment?
- Solicitors acting for the borrower in an equity release transaction
- Independent financial advisers and equity release advisers who have identified a potential capacity concern
- Lenders and providers requiring independent confirmation before proceeding
- Family members concerned about a relative’s capacity to enter into an equity release product
Pricing & Turnaround
Equity release capacity assessments start from £600 (excl. VAT). A mileage-based travel supplement applies to in-person assessments outside the assessor’s base location and will be quoted in advance. Reports are delivered within 72 hours of the assessment being completed.
Payment terms: Solicitors and professional referrers pay on receipt of invoice. Private clients pay in advance.
Frequently Asked Questions
Does the person need to be seen in person?
In most cases, yes — a face-to-face assessment allows for a fuller clinical evaluation. However, video assessments are available in suitable cases. We will advise on the appropriate format for your matter.
What if the person is in a care home?
We regularly conduct assessments at care homes, nursing homes, and residential addresses across the UK. A mileage-based travel supplement applies for in-person visits and will always be quoted before instruction.
What if the assessment finds the person lacks capacity?
If the assessment concludes that the person lacks capacity to enter into the equity release transaction at this time, the report will explain the clinical basis for that opinion. The transaction cannot proceed while capacity is absent. Depending on the individual’s circumstances, a review assessment at a later date may be appropriate if capacity is likely to fluctuate.
Is the report accepted by equity release lenders?
Our reports are authored by GMC-registered independent psychiatrists and structured to meet medico-legal standards. They are widely accepted by major equity release lenders and Equity Release Council member firms. If a lender has specific requirements for the report format, please advise us at the point of instruction.
To instruct an equity release capacity assessment, call 0800 970 5174 or email hello@mentalcapacityassess.co.uk.