Specialists in Later Life Lending Advice.

Equity release enables UK homeowners aged 55 and over to access tax-free cash from their home's value, with lifetime mortgages being one of the most popular options.

The amount you can borrow is based on the age of the youngest applicant and the value of your property. Factors like health conditions and property postcode can also influence the loan size.

The FCA mandates that you receive specialist advice, requiring you to have both a financial adviser and a legal representative. Lenders charge a fixed interest rate over your lifetime.

You have the option to make payments to the lender, which will affect your future mortgage balance.

The released funds can be received as a one-off payment or through a series of ad-hoc lump sums, known as drawdown.

Finally, the lender secures the loan by placing a first legal charge on your property.

The amount you can borrow through equity release depends on the scheme type, your age, and your property's value. We recommend borrowing only what you need to minimize interest rates.

For lifetime mortgages, the minimum loan starts at £10,000. At age 55, you can release up to 33% of your property's value, increasing to up to 60% by age 83. Home reversion schemes start with a minimum loan of £25,000, allowing you to sell up to 100% of your home's value at a discounted rate.

Retirement Interest Only mortgages (RIOs) begin at age 50 and offer borrowing capacity similar to residential mortgages, based on affordability. Your pre- and post-retirement income and credit record will determine the maximum amount you can release with a RIO.

For a quick estimate, try our Equity Release Calculator.

Equity release offers numerous safeguards. However, it is important to understand that equity release can impact means-tested benefits and reduce the equity you may leave to your beneficiaries. Therefore, consider all your options, including downsizing, before making a decision.

If you're thinking about equity release, thoroughly research the company providing the advice, including customer reviews. At Search Equity Release, we've been offering impartial, whole-of-the-market advice on equity release and retirement mortgages.

Modern equity release schemes include features that ensure full protection for homeowners.

Firstly, the no negative equity guarantee ensures that beneficiaries will never owe more to the equity release company than the property's sale value.

Additionally, for joint applicants, there is an option for a 3-year no early repayment charge (ERC). This allows you to repay the loan without penalty within three years following the death or long-term care of a partner.

To qualify for equity release, you must meet the following criteria:

- Be a UK resident aged 55 or over.

- Own 100% of your residential property.

- Have a property with a minimum valuation of £70,000.

If you have an existing mortgage, it must be repaid either before or upon completion of your equity release plan. This can be done using your own funds or from the proceeds of the equity release itself.

To qualify for equity release, your property must be your main residence and located in England, Scotland, Wales, or Northern Ireland.

Typically, the property needs to be of standard construction with a minimum value of £70,000. While different lenders have various maximum property values, amounts up to £10 million are common, with some companies offering unlimited maximum property value ceilings.

Both freehold and leasehold houses are eligible, while lending on leasehold flats and maisonettes is also allowed. Lease terms must generally exceed 75 years to meet lending criteria.

The property should have no constraints on residential use. Unusual features, such as annexes, large acreage, trusts, or non-standard build types, usually require a lender referral.