Am I eligible for equity release?

The eligibility criteria for equity release can vary depending on the provider and the specific product, which an advisor can take you through in more detail.

However, there are standards which are required from most providers.

Firstly, you must own the home you wish to release equity from, and it must be worth at least £70,000.

The property must also be your main residence and be based in the UK.

Not all property types qualify, but generally it must be in a good state of repair and be of standard construction.

Some non-standard constructions such as thatched roofs may require additional conditions and may not be acceptable to all lenders.

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Age is another factor, and the youngest homeowner on the deeds must be at least 55 years old.

There are two types of equity release, a lifetime mortgage and a home reversion plan.

A lifetime mortgage is the most popular and allows you to continue owning 100% of your home. With this type of plan any money released, plus accrued interest, is repaid upon death or moving into long-term care.

With a home reversion plan, you sell a percentage (or all) of your home to a lender, but you retain the right to live in the property, typically rent-free, for the rest of your life. They're usually available once you're aged 60 although the minimum age requirements may be higher depending on the lender.

Different providers may have additional specific criteria or conditions.

For example, some may have restrictions based on the location of the property or may not offer equity release on certain types of homes (like flats in high-rise buildings).

A conversation with an equity release advisor can help you find out if your property might be suitable.

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How much could I access?

Conditions such as the age of the youngest homeowner, your property value and whether it is a single or joint application can affect how much you may be able to release.

This is currently anywhere between £10,000 up to 58% of your home’s value. Generally, the older the youngest homeowner, the more you may be able to release.

How much you could release also depends on other factors such as what you plan to use the money for, as it’s not advisable to release too much and end up paying unnecessary interest on the loan.

How you can enjoy spending the money is quite varied however, whether that’s on a holiday, home renovations, helping loved ones or supplementing your retirement finances. It does however require paying off any existing mortgage first.

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Is equity release a good idea for you?

Equity release is a long-term financial commitment so it’s important to get the right advice.

Advice is required before proceeding with equity release and a specialist advisor, such as those at Age Partnership Plus, can talk you through the different options to help you find out if it could be right for your individual needs, or if another option could be better.

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Equity release may involve a home reversion plan or a lifetime mortgage, which is secured against your property and reduce the value of your estate and impact funding long-term care.

Any money you release, plus accrued interest, is repaid when you die or move into long-term care.

Initial advice is provided for free and without obligation. Only if your case completes would an advice fee of £1,995 be payable. Other lender and solicitor fees may apply.

The Radio Times equity release service is provided by Age Partnership Limited. Radio Times is a trading name of Immediate Media Company London Limited which is an Introducer Appointed Representative of Age Partnership Limited, 2200 Century Way, Thorpe Park, Leeds LS15 8ZB. Company registered in England and Wales No. 5265969. VAT registration number 162 9355 92. Age Partnership Limited is authorised and regulated by the Financial Conduct Authority. FCA registered number 425432 and is trading as Age Partnership Plus.