As it’s National Conveyancing Week (17–24 March), it’s an ideal time to reflect on the progressing landscape of property transactions. Times are rapidly changing in the way customers buy, sell and manage properties, propelled by technological advancements and adaptable financial solutions that extend beyond traditional mortgages.

The digital evolution of conveyancing

One of the most thrilling advancements in the industry is the move towards digitisation. The conveyancing sector is progressively incorporating technology to enhance efficiency, accuracy, and accessibility.

This growing digital sophistication is highlighted in the 2024 Digital Conveyancing Maturity Report, which revealed that nearly one-third of conveyancing firms now achieve a digital maturity score of 60% or higher. This demonstrates that these firms have embraced and integrated a range of digital tools and technologies throughout the conveyancing process.

The report also highlighted the technologies propelling this digital transformation:

  • 76% of conveyancers now utilise digital ID checks

  • 87% submit AP1 forms electronically, and

  • 57% employ digital dashboards to streamline their processes.

These findings signify a substantial shift towards digital workflows, showcasing the industry’s dedication to enhancing efficiency and security.

These technological advancements are revolutionising the management of transactions, reducing delays, and bolstering security. Consequently, the traditionally lengthy and complex process of conveyancing is becoming significantly more efficient.

Key technologies driving this transformation include:

  • Artificial Intelligence (AI): AI is revolutionising the way we process documents, analyse contracts, and conduct legal research. By automating routine tasks, we can reduce errors, speed up transactions, and allow solicitors to focus on providing strategic advice. Across the legal sector, AI adoption has more than doubled in recent months, with many UK law firms allocating budgets specifically for generative AI tools.

  • Secure Online Platforms: Digital tools are making communication between all parties—solicitors, estate agents, lenders, and clients—more seamless than ever. Real-time updates and secure document sharing reduce delays and increase transparency throughout the process.

  • Electronic Signatures: The ability to sign contracts and legal documents digitally has significantly reduced transaction times, allowing buyers and sellers to complete paperwork remotely and securely.

  • Digital ID Verification: With fraud in property transactions a growing concern, digital identity verification tools are making it easier and safer to confirm clients’ identities, reducing the risk of impersonation fraud and ensuring compliance with anti-money laundering regulations.

The shift towards a digital-first approach is not only enhancing efficiency but also offering clients a more accessible and convenient experience. However, while technology is streamlining conveyancing, financial decisions around homeownership remain crucial. It is essential for homeowners and prospective buyers to understand the financial options available to them, such as shared equity and equity release.

Shared equity: A pathway to homeownership

For many first-time buyers, entering the property market can be challenging. Shared equity schemes provide a potential solution by allowing purchasers to acquire a portion of a property, while a third party—often a government program or housing association—retains ownership of the remaining share.

In the first six months of 2024-25, 1,426 affordable homes were started under Intermediate Affordable Housing schemes, including Shared Ownership and Rent to Buy. This represents a 22% increase compared to the 1,166 homes started in the same period of the previous year.

Unlike shared ownership, where rent is paid on the remaining portion, shared equity usually involves no rental payments, although homeowners may still have to pay service charges or other associated fees. However, some shared equity schemes may require buyers to pay a small fee on the retained portion, so it’s important to check the terms carefully.

Advantages of shared equity:

  • Lower Initial Costs: Buyers can secure a home with a smaller deposit and a reduced mortgage requirement.

  • Increased Accessibility: Shared equity makes homeownership a reality for those who might struggle to afford a property outright.

Considerations:

  • Long-term Financial Commitment: While buyers may start with a lower mortgage, they will need to consider the costs of increasing their share over time.

  • Resale Restrictions: Selling a shared equity property can involve additional steps, such as offering the share back to the scheme provider first.

  • Potential Payment Increases: In some cases, the third party that retains a share in the property, such as a housing association, may have the right to increase fees or service charges over time, adding to the homeowner’s financial commitments.

Exploring equity release

Equity release allows homeowners to access the equity tied up in their property without the need to sell or move. This can be particularly beneficial for those looking to supplement their retirement income or fund significant expenses, and it is growing in popularity.

In Q4 2024, total equity release lending reached £622 million, up 16% from the previous quarter, indicating a steady recovery in market activity.

To be considered eligible for equity release, you must meet the following criteria:

  • Be aged 55 or over (or over 60 for home reversion plans)—for joint plans, the youngest borrower must be at least 55.

  • Own your own property outright, or in some instances, have a small outstanding mortgage.

  • Be looking to release equity in a property that is in England, Scotland, or Wales, and valued at more than £70,000.

Interestingly, the average age of those choosing to release equity from their homes is decreasing. Pure Retirement revealed that in the first half of 2024, 19% of equity release customers were aged 60-64—up from 7% in 2019. The 65-69 age group accounted for 24% of all customers, while the proportion of customers aged 75-79 had decreased.

While equity release may seem like a short-term solution to low funds, it’s crucial to consult with qualified professionals before proceeding. As members of the Equity Release Council, our solicitors will make you aware of both the benefits and long-term implications, which include:

Pros

  • Access to Money: Provides a lump sum or regular income, which can enhance quality of life in retirement.

  • No Monthly Repayments: Repayment is usually deferred until the homeowner passes away or moves into long-term care.

Cons

  • Reduced Inheritance: The value of the estate passed on to beneficiaries may be diminished.

  • Accumulating Interest: Interest on the loan can compound over time, potentially reducing the remaining equity substantially.

Contact a Conveyancing Solicitor

Here at Farleys, we have a team of residential conveyancing solicitors available to assist with the buying, selling or leasing of a property. Get in touch on 0845 287 0939, contact us by email, or use the online chat below.