How much equity can I release from my home?

13th Jun 2023

Equity Release

By Ashley Shepherd

How much equity can i get?

How much equity can I release from my home, is a question we are often asked when customers are looking to release money tied up in their home. Subject to eligibility, the actual amount will depend on your age and property value, but typically ranges between 20% to 50% for the most popular type of equity release, the lifetime mortgage.

What impacts the amount of equity I can release from my property?

Several factors impact the maximum amount of equity you can release from your house. Lenders need to gauge how long it will be until the loan is repaid and be certain that the property will sell when the time comes. The greater the risk for the lender, the lower the amount of equity you can release.

These factors include:

Your age – the maximum percentage you can release will be based on the age of the youngest homeowner. Typically the older you are, the more equity you can release.
Your health – if you have any underlying health conditions, you may qualify for a higher loan to value with medically enhanced equity release. Basically, if a lender thinks you will live a shorter than average life, they will treat you as an older person. This means you will qualify for a higher percentage of equity release.
The value of your property – the higher the property value, the more you can borrow.
The type of property – Some lenders may offer a higher loan to value on houses rather than flats and the property must be of standard construction.
The condition of your property – this is important to the lender too as they want to be certain your property will sell to repay the loan.
Joint or single application – some lenders may offer slightly less for joint applications however if you do have a spouse or partner living at the property, a joint scheme would be worth considering.

What percentage of equity can I release from my property?

As of November 2023, the maximum percentage equity you can release from your home is 50%*. For example, if you're aged 55, which is the minimum age for equity release, you can expect to release a maximum of 20%. Whereas if you’re an 83 year old, you could release a maximum of 50% of the value of the home

Generally the older you are the more equity you can release. Plus, according to the MoneyHelper, some equity release providers offer larger sums to homeowners with certain medical conditions.

Releasing cash tied up in your home involves taking out a Lifetime Mortgage. Therefore it’s not a decision to make lightly and should be considered as part of your overall financial planning needs. For example, if you have savings or investments, you may think about using these funds first. You could also consider downsizing as another alternative way of releasing some of the equity tied up in your home.

How much cash could you release

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Estimating how much you could release

This table provides examples of how much you could release depending on your age and property value - for a more accurate figure try the calculator.

	Examples of how much equity you could release
Property value >	£150,000	£200,000	£300,000	£400,000	£500,000	£1,000,000
Over 55	£32,250	£43,000	£64,500	£86,000	£107,500	£215,000
Over 60	£39,750	£53,000	£79,500	£106,000	£132,500	£265,000
Over 65	£47,250	£63,000	£94,500	£126,000	£157,500	£315,000
Over 70	£54,750	£73,000	£109,000	£146,000	£182,500	£365,000
Over 75	£62,250	£83,000	£124,500	£166,000	£207,500	£415,000
Over 80	£69,750	£93,000	£139,500	£186,000	£232,500	£465,000
Up to 84	£75,750	£101,000	£151,500	£202,000	£252,500	£505,000
These figures are a guide, as at 26th July 2023; use the online calculator to obtain a personalised illustration.

Next steps

Hopefully this article has answered all your questions on how much equity you can release from your property. Releasing equity is a big decision however, so you might want to read our guides and when you're ready, get advice on whether equity release is a good idea for you.