How much equity can I release?
If you are currently considering unlocking the equity from the value of your home, you are probably wondering how much capital you can raise.
To confirm whether you can release equity from your property, lenders will consider several factors, including the type of loan you wish to take and the amount of equity you want to release.
The value of your property will, of course, be a big influence on the equity you can release and the money you can access, but there are several other considerations too, such as:
- The age of the youngest homeowner - the minimum age for an equity release plan is normally 55.
- The health and lifestyle of the homeowners. Some health conditions could enable you to borrow more through what is known as an ‘enhanced’ lifetime mortgage .
- Whether the applicant has full ownership of their property. For those who still have an outstanding mortgage or debt secured against their house, the maximum amount that can be released will be reduced by the amount of outstanding mortgage or secured loan that must be repaid.
- The type of construction of your property and its condition – which your local Equity Release Supermarket adviser will talk through with you in more detail.