Who is eligible for equity release?

The three main equity release criteria are your age and the location and value of your property. However, while this is straightforward enough, there are other factors that your lender will take into account when reviewing your application. 

Here, we take a closer look at these criteria and explain how lenders will assess your eligibility, so you can decide if releasing equity from your home is both possible and right for you. 

What are the main eligibility criteria for equity release?

The main eligibility criteria for a lifetime mortgage (the most popular for equity release) are as follows: 

1. You or the youngest homeowner must be at least 55 years of age 
2. You must own a property within the UK 
3. Your property must be worth at least £70,000 

For a home reversion plan (alternative type of equity release), the minimum age rises to 60 but the other criteria remain the same. 

In addition to these three main requirements, a lender will also consider the type of property you own to ensure it meets with their eligibility criteria. 

Does my age affect my eligibility for equity release?

Age is one of the main deciding factors in whether or not you will qualify for equity release. That’s because the loan is repaid when you die or move into residential care. So,  the lender is taking a greater risk with younger applicants, as it is likely to take longer for the loan to be repaid. Therefore, the older you are, the more you can typically borrow.  

It’s also worth mentioning that while some lenders impose an upper age limit of 90, others have no upper age limit. 

To illustrate how age can impact the amount of equity you can release, here are some examples by age and property value. 

*If you're viewing this page on a mobile phone, scroll right to see the full table.

For a personalised illustration of how much equity you could release, try our quick and easy calculator. 

Will my property affect my eligibility for equity release? 

With equity release, you are taking out a loan against your home and this is repaid from the sale of your property when you die or move into long-term care.  

Your lender will therefore want to ensure your property is saleable. So, in addition to the main qualifying conditions, your home must comply with the following requirements. 

Property type and construction

Most houses, flats, and bungalows of a standard construction type (i.e. brick or stone with pitched roofs of tile or slate) are acceptable for equity release. Some lenders will also consider releasing equity on properties with certain non-standard features, such as annexes and flat roofs. However, these are dealt with on a case-by-case basis, with some construction types presenting more challenges than others. 

In addition, some lenders may be more cautious over leasehold properties, especially where there is only a short time remaining on the lease. And while it is possible to get equity release on ex-local authority properties, lenders will consider the percentage of properties in the area that are still owned by the local authority before making a decision. 

Property condition

To qualify for equity release, your property must be in a good condition. It must also be kept in a good state of repair throughout the duration of the lifetime mortgage. As part of the application process, a surveyor will visit your property to assess its value and suitability for equity release. 

Property location

Equity release is available in mainland England, Wales, Scotland, and Ireland. However, there are fewer lenders in Ireland, so choices are more limited. Some islands, such as the Isle of Wight also qualify, while others such as the Isle of Man do not. 

In addition, the specific situation of your property within its local area may affect your eligibility for equity release. That’s because anything that could have an impact on the resale of your property may have a bearing. For example: 

• Homes in rural or remote areas – that may be less attractive to buyers. 
• Homes in high-risk areas – that are prone to floods or landslides. 
• Local market conditions – where property prices are stagnant or declining or where there is a low demand for housing. 
• Neighbouring properties – such as a pub, busy restaurant or train station that buyers may not want to live alongside 

What else could affect my eligibility for equity release?

Your application for equity release may also be affected - and even improved - by the following factors. 

An existing mortgage – It is possible to release equity if you have an existing mortgage but this will depend on the size of the debt. You must also clear any existing mortgage, either from savings or with the money you release. The remaining cash can be spent however you wish.

The amount you want to release – If you have a set figure in mind you’ll need to make sure that the actual amount you can release will meet your expectations. To understand how much cash you could release, based on your age and the value of your property, use our free calculator. 

Health – If you are in poor health, this could have a positive impact on the amount of equity you can release. If the lender understands that your medical condition could lead to a shorter life span, and a greater chance of the loan being repaid sooner, they may offer you a larger percentage of the equity you have in your property. 

Credit history – your credit history will not usually affect your eligibility as you do not have to demonstrate you have the funds to make monthly repayments. However, you may not be accepted if you have been made bankrupt. 

Is it difficult to get equity release?

As long as you are in the right age bracket and have a property that meets the company’s lending criteria, it’s not too difficult to release equity from your home. However, you must consult a suitably-qualified financial adviser. 

As the loan is repaid from the eventual sale of your property, your income does not affect your eligibility and you don’t need to demonstrate affordability as you would with a standard residential mortgage.

The process typically takes around 8 weeks but this will depend on your personal circumstances.