Yes, couples can take out a lifetime mortgage together. A joint plan is assessed on the younger partner's age, and the younger partner needs to be 55 or over. The first death does not itself make a joint lifetime mortgage repayable. The loan is repaid when the last borrower dies or moves permanently into long term care.
How a joint plan works
With a joint plan, both of you are named on it. Under the Equity Release Council's standards, customers have the right to live in their home for the rest of their life, or until they move permanently into care, as long as it stays their main residence and the terms of the plan are kept.
Why the age gap matters
A joint plan goes on the younger age. A couple aged 74 and 66 are assessed at 66, not 74, and not the average.
That is because the plan has to be able to run for the longer of the two lives. With a lifetime mortgage, the older you are, the more you can release, so a wide age gap usually means a lower maximum than the older partner's age alone would suggest.
For a guide figure based on the younger age, use our lifetime mortgage calculator, or read how much equity can I release?
If one of you is under 55
A lifetime mortgage starts at 55, and on a joint application that applies to the younger partner. If one of you is under 55, a joint lifetime mortgage is not available yet. That leaves a few routes worth looking at.
- Waiting. If the younger partner is close to 55, the simplest answer may be to wait until they reach it.
- A retirement interest only mortgage (RIO). Available from 50, depending on the lender. It is assessed on affordability, and on a joint application lenders look at what the survivor would be left with if one of you were to pass away. You pay the interest each month, and your home may be repossessed if you do not keep up the payments. See retirement interest only mortgages.
- A residential mortgage for older borrowers. Typically available from 50 up to 80, depending on the lender and your situation. It is assessed on your total joint income, and your home may be repossessed if you do not keep up repayments.
A plan in one name only. Some couples ask whether the older partner could take a plan on their own. If you are married and one of you is under 55, a plan can be taken out in one name. It is not always the right route, and Craig looks at every other option before recommending it. Whether a lender will allow it, and on what terms, depends on the lender's criteria. The right to stay in the home for life belongs to the customers on the plan. So the question that matters most is what would happen to the partner who is not on it if the borrower died or moved into care. That has to be answered clearly before anything goes ahead, and Craig and your solicitor would go through it with you both.
When one of you dies
The first death does not itself make a joint lifetime mortgage repayable. The surviving partner can stay in the home while it remains their main residence and the plan's terms are kept to.
Some plans also give joint applicants an option to repay the loan without penalty within three years following the death or long term care of a partner. Whether yours does depends on its terms.
The loan becomes repayable on the second death, or when the surviving borrower moves permanently into long term care. We explain the whole process in what happens to equity release when you die or go into care.
Things to decide together
Equity release will reduce the value of your estate, and the money released could affect your entitlement to means-tested benefits. Interest that is not paid is added to the loan and compounds, so what you owe can grow significantly over time.
Both of you should be part of every conversation, and your family is welcome too. Every customer must also receive independent legal advice before going ahead.
Two documents make a real difference for couples: a will, so what remains goes where you intend, and a lasting power of attorney each, so the other can act for you if you lose capacity.
Equity release for couples: common questions
What happens to equity release when one partner dies?
The first death does not itself make a joint lifetime mortgage repayable. The surviving partner can stay in the home while it remains their main residence and the plan's terms are kept to. The loan becomes repayable on the second death, or when the survivor moves permanently into long term care.
Can we get equity release if one of us is under 55?
Not a joint lifetime mortgage, because the younger partner needs to be 55 or over. A retirement interest only mortgage, from 50 depending on the lender, or a mortgage for older borrowers may be options. Both need monthly payments, and your home may be repossessed if you do not keep them up.
Is a joint plan based on the older or the younger age?
The younger age. A couple aged 74 and 66 are assessed at 66. A wider age gap usually means a lower maximum.
Can I use equity release to buy out my partner's share of the house?
People do ask, often after a separation or where a home is owned with someone else. Whether it could work depends on the lender's criteria, your age, the home's value and how much is needed, and any existing mortgage would have to be repaid as part of it. The legal side, particularly after a separation, needs a solicitor. Talk it through with Craig before you agree anything.
Can my partner stay in the house if I go into care?
On a joint plan, yes. The plan continues and your partner is unaffected. Repayment is only triggered when the last borrower dies or leaves the home permanently.
Not sure how any of this applies to your own circumstances? Craig is happy to talk it through, free and with no obligation.
Talk it through with Craig
If there are two of you, and especially if there is an age gap, it is worth one conversation together. The first conversation is free.
Book a call with Craig or call 0113 403 5584.
