Equity release calculator

Use the calculator to find out how much cash you could release from your home. Results are instant and there’s no obligation to proceed; plus you’ll receive a free equity release guide.

 

How to use our free equity release calculator

Our equity release calculator will quote you the amount of equity you can release from your home based on the age of the youngest homeowner and the value of your property.

You simply need to add:

  • Your estimated property value - if you not sure how much your property is currently worth, you can get a free valuation from Zoopla or an estate agent like Yopa
  • Your postcode
  • Your name
  • The age of the youngest homeowner
  • Your email address
  • Your phone number

What percentage can you get on equity release?

The percentage equity you can release from your home will depend on your property value and your age or that of the youngest borrower. The older you are, the more you can borrow.

Over 55s with certain medical conditions may also be able to borrow more with an enhanced lifetime mortgage. If the lender believes they may be repaid sooner as your condition could shorten your life expectancy, they will usually offer a higher percentage.

How do you calculate equity release?

To calculate the total equity you can release, you need to know the loan to value (LTV), which is the maximum percentage you can borrow based on your age (as shown in the table below). You then multiply this by the value of your property. 

For example, someone aged 65 can release a maximum percentage of 31.5% of their property value. If they suffer from a health condition and are eligible for a medically enhanced lifetime mortgage the maximum percentage will increase slightly.  

From the age of 55 you can typically release a maximum of around 21.5% of your property value. This percentage increases by approximately an extra 1% each year, to a maximum of just over 50%.

Age Maximum standard
55 25.72%
56 26.71%
57 27.70%
58 28.70%
59 29.69%
60 31.28%
61 32.87%
62 33.81%
63 34.86%
64 35.91%
65 36.96%
66 38.01%
67 38.54%
68 39.59%
69 40.64%
70 42.10%
71 42.60%
72 44.00%
73 45.42%
74 46.94%
75 48.30%
76 49.35%
77 50.51%
78 54.45%
79 52.08%
80 53.03%
81 53.12%
82 53.61%
83 53.61%
84 53.61%

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Lifetime mortgage costs and interest rates

Lifetime mortgage costs include fees for arranging the loan and interest on the money you borrow. The set up costs for equity release include legal fees, payment for professional advice, lenders fees and surveyors charges.

Your lifetime mortgage interest rate will dictate how much interest you pay over the life of the loan.

Do I qualify for equity release?

To qualify for equity release you need to be 55 years of age or older and own a property worth at least £70,000. Although there is no upper age limit, some providers do have a maximum 90 year threshold.

You can still qualify for equity release if you have a mortgage, but this must be repaid with the money you release.

In addition to age and property value, whether you qualify will also depend on

  • If the loan is in joint or single names
  • The location and construction of the property

Joint vs single

A lifetime mortgage can be arranged in single or joint names. All joint equity release applicants must be at least 55 years of age and the amount you can release will depend on the age of the youngest applicant.

Typically, providers will request you choose a joint scheme if you have a spouse or partner living at the property. The worry is that if the plan were in a single name and that named person dies or moves into care, the property would need to be sold within 6 to 12 months in order to repay the loan. Whereas if the plan were in joint names, the property would only be sold once the second person dies.

Which is why joint equity release could be the best option for joint property owners.

How property, location and construction affect lifetime mortgages

The type of property you own, construction and location of it may also affect the lifetime mortgages available to you. Basically, the lender will want to ensure that when the time comes, the property will sell for market value. So typically, they will want the property to be of standard construction.

Whilst equity release is available to over 55s throughout the UK, fewer lenders operate in Scotland and there are currently limited lenders in Northern Ireland. As a result of these limitations, the amount you can borrow and the interest rates available to you may be affected.

Try the equity release calculator

How long does equity release take?

The equity release process usually takes between 8 to 12 weeks, assuming there are no complications. This allows time for you to seek specialist financial advice, submit your application, get a valuation and enlist the help of a solicitor.

Once all the legal checks are complete and the valuation is complete, your solicitor will set a completion date for the money to be paid either via cheque, or straight into your account.  

What is the difference between pay monthly and interest roll up options?

When it comes to repaying the loan, you can choose to make no monthly repayments with the ‘roll up option’, or to repay some or all of the interest with the ‘pay monthly option’.

Pay monthly option - you have the freedom to make payments against some, or all of the interest on a monthly basis. This option will reduce the overall size of the loan when it comes to repayment.

Roll up option – there are no monthly repayments to make. Instead, the interest is added to the loan and repaid once you die or move into long term care.

So, if you are trying to keep monthly costs to a minimum, the compound interest roll up option could help as there are no repayments. However, the size of the loan will grow at a much faster rate with this repayment option as the interest continues to be added.

Will doing equity release affect my entitlement to means tested benefits?

Equity release could affect your entitlement to means tested benefits if the cash sum paid out takes you above the savings threshold. A specialist equity release adviser will help you understand the impact releasing equity could have on any benefits you currently receive and advise you on the best way forward.

Equity release – a big decision so think it through

Releasing equity from your home could help provide the financial support you need but it is a big decision and not one that should be taken lightly.

If you are considering it as an option to boost your finances, in addition to using the free equity release calculator, it could be worth talking it through with family and seeking advice from an expert who can help you explore your options.

Free equity release calculator

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Quick and easy to use

Instant results

Free guide

No obligation to go further

Please note

This is a lifetime mortgage. To understand the features and risks, ask for a personalised illustration.
You only continue to own your own home with a lifetime mortgage which is secured against your property
All deals subject to eligibilty.

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Age Partnership
Quotezone.co.uk
sunlife.co.uk

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