Home > What is Equity Release? > Am I eligible for equity release?
AM I ELIGIBLE FOR EQUITY RELEASE?
Find out if you’ll be eligible for equity release and discover your other options
- Overview of eligibility criteria for equity release
- Discover what other options you have over 55
- What are my options if I’m not eligible?
Who Can Apply for Equity Release?
To apply for equity release, you need to meet certain requirements before starting the process.
Lifetime mortgage or home reversion plan
- Age: You (or the youngest applicant) must be at least 55 years old.
- Property Ownership: You must own your home and be named on the property deeds. Your home must be in the UK and your main residence.
- Property Value: Your property needs to meet a minimum value, usually from £70,000, and the criteria set by the lender, but this can vary
- Mortgage Status: If you have a mortgage, this must be repaid first or as part of the process. You can use the money from equity release to do this.
If you meet the eligibilty requirements, your adviser can recommend a suitable plan based on your personal needs and the lender’s criteria.
Health and Lifestyle Considerations
Some lenders may offer different amounts depending on your health and lifestyle. This means that if you have certain medical conditions or lifestyle factors, you might be able to borrow more, if required, or achieve a better rate of interest. Your adviser will discuss this with you.
Affordability Checks
For lifetime mortgages and home reversion plans, the lender won’t require a formal affordability assessment. This is because the loan, plus any interest, only has to be repaid when the last applicant either moves into long-term care or passes away. However, your adviser will still review your income and expenses to make sure they can provide the best advice for your circumstances, including consideration of whether equity release is the right choice for you.
What If You Don’t Qualify for One Plan?
There are many different plans available. If one lender doesn’t approve your application, another might. Your adviser will look at all available options to find the best plan for you. At Equity Release Associates, we’re whole of market, which means that we have access to the majority of lenders, we’re not restricted to a panel, so we can ensure you’re getting the best plan available for you and your circumstances.
Exploring Other Ways to Access Money
Equity release isn’t the right choice for everyone. If your adviser doesn’t think it’s the best option for you, they will let you know. Where applicable, they will also recommend you explore other ways to raise money, such as:
- Applying for grants to help with home improvements
- Checking if you qualify for benefits like care allowances
- Renting out a room in your home to earn extra income
- Utilising your pension
- Your savings
- A personal loan
Getting Professional Advice
You must speak to a qualified equity release adviser before applying. This ensures that you fully understand your options and choose the best way to access the money you need.
Equity release may involve a home reversion plan or a lifetime mortgage, which is secured against your property and will reduce the value of your estate and impact funding long-term care.
Equity release requires repaying any existing mortgage. Any money released, plus accrued interest would be repaid upon death, or moving into long-term care.
Advice is required to proceed with equity release and there may be other options which better suit your circumstances. We provide initial advice for free and without obligation. Only if your case completes would our advice fee of £1,695 be payable. Other lender and solicitor fees may apply.re
HOW MUCH COULD YOU RELEASE?
Use our online calculator to get an estimate of how much equity you might be able to release.
It’s quick, easy, and gives you an idea of what’s possible – no obligation, just a helpful starting point for your decision.
