Together joins Equity Release Council: why landlords should check lender permissions on later-life funds

Together has joined the Equity Release Council (ERC). That does not create any new legal duty, licensing rule or compliance deadline for landlords. It does, however, highlight a practical risk: some buyers and owners may use later-life borrowing, second-charge finance or equity release as part of a property transaction, and those funds need careful checking.

The confirmed point is limited. Together, a specialist lender active in first-charge, second-charge, bridging and later-life lending, is now a member of the ERC. That does not by itself mean a new product launch, and it does not mean landlords or agents should assume equity release funds are acceptable for every purchase. Any wider market change is still possible rather than confirmed.

Check the source of funds and the lender’s terms

If a buyer, guarantor or existing owner says money is coming from equity release, a retirement interest-only mortgage or another later-life facility, ask for:

• documentary proof of the loan
• source-of-funds evidence
• any lender conditions or restrictions on use

That matters particularly in London, where deposit and refurbishment sums can be substantial even on lower-value stock.

Landlords should also distinguish between borrowing secured on an owner-occupied home and borrowing intended to support an investment purchase. Many later-life products are designed around a borrower’s main residence, not a buy-to-let acquisition. If released capital is being used towards a rental purchase, check that the lender permits that use and keep the evidence on file. If the product terms restrict investment use, the transaction may fail late in the process after legal and valuation costs have already been incurred.

Do not stray into regulated advice

Agents and landlords should be careful not to comment on whether a lifetime mortgage, retirement interest-only product or second charge is suitable for the customer. That is the role of the customer’s FCA-regulated mortgage adviser and solicitor.

A safe internal script is:

“We’ll need confirmation from your regulated adviser and solicitor before we can rely on these funds.”

That keeps the conversation focused on process rather than suitability.

Where this tends to arise in practice

Common scenarios include:

• an older homeowner releasing capital to help an adult child buy through a limited company
• a landlord in later life raising funds against their own home for refurbishment before refinancing
• a family transfer or restructuring where funds are being gifted onward

In those cases, the file should include ID checks, source-of-funds records, the nature of the money (loan or gift), and written confirmation of lender consent where relevant.

Portfolio landlords and company purchases need a clear audit trail

For portfolio landlords and BTL companies, the main issue is record-keeping rather than ERC membership itself. If money from a director, shareholder or relative originates from later-life lending, the file should show:

• where the money came from
• whether it is a loan or a gift
• whether the lender’s terms allow that use

Missing paperwork can delay conveyancing, refinancing and anti-money laundering checks.

Review your wording on finance

If your website, onboarding documents or staff scripts refer to finance, remove any wording that implies you can assess the suitability of equity release or later-life borrowing. Keep the wording factual: you can explain your property process, but lending suitability must be handled by a regulated mortgage adviser and an independent solicitor.

What this announcement does — and does not — change

Together joining the ERC does not change tenancy law, landlord licensing or mortgage regulation overnight. There is no announced legal deadline attached to the membership.

The sensible response is operational rather than legal:

1. Update onboarding checklists so later-life lending and second-charge funds trigger extra source-of-funds questions.
2. Brief staff to refer clients to regulated advisers rather than discuss product suitability.
3. Agree evidence requirements with your broker, conveyancer or compliance lead on any live case involving later-life borrowing.

This article is general information, not legal or financial advice.