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Equity Release

Learn More About Equity Release Options

Equity Release mortgages are not like residential mortgages. They help you secure a loan against the value of your property. In these guides we outline what makes them different, the eligibility criteria and help you decide if it’s an avenue you would like to pursue. It’s a way to free up money in your later years, but with many factors influencing the loan, it’s good to learn as much as you can from qualified mortgage professionals.

Posted On: January 25, 2022
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Updated On: January 16, 2023

What Percentage Of House Value For Equity Release?

If you’re hoping to secure an equity release plan, you’ll likely want to know how much cash you can get. In this guide, we’re exploring what percentage of house value you can get with equity release.

The percentage of house value you can receive in cash, may depend on what type of equity release product you choose. With a home reversion plan*, your equity release loan will usually fall between 20% – 60% of the market value, so will be lower than the actual value of your property.

With a lifetime mortgage*, you can release up to 27% of your property value from the age of 55. This value increases each year you age, although the maximum percentage is capped at 58% from age 82.

To get the best estimate of how much cash you’d be able to acquire from equity release, you can speak to a mortgage advisor. They will help you calculate the current value of your property and subtract any outstanding mortgage payments. They can also help factor in additional costs to your budget, such as home mortgage valuations and referral fees.

It’s worth noting that cash from equity release is tax-free, so you won’t have to factor that into your budget.

You also don’t have to get equity release for the whole of your property. You can ring-fence a portion to save for inheritance. So to some extent, you have choice over the percentage of house value for equity release.

The big disadvantage is that the amount of money you can get will usually be less than the true market value of your property.

Can you get more than 60%?

With a home reversion plan, it is possible to get up to 80-100% of the property’s value, but typically it’s 20-60%, which is a lot lower.

What factors impact the percentage I can get from equity release?

Common factors that may impact the percentage you can get from equity release, include:

  • Your age and health
  • Property value and condition
  • Outstanding debts and mortgage payments

Book your equity release consultation today

At Agentis, we have equity release mortgage experts with years of experience securing the right plan for older homeowners. Speak to us today to arrange your initial consultation.

*Please note that Agentis is unable to provide advice on home reversion plans. 

*A lifetime mortgage is a long term commitment which could accumulate interest and is secured against your home. Equity release is not right for everyone and may reduce the value of your estate.