Equity Release Calculator in Jan 2022
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How Much Cash Can You Release With an Equity Release Plan?
Contributors: Nicola Date, Katherine Read & Edited by Rachel Wait. Reviewed by Francis Hui
Find Out the Amount of Cash You Can Unlock in Jan 2022 With Our UK Release Equity Calculator. It's Free & It's Fast. Get Started Now.
Before You Start Reading....
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You could be sitting on a goldmine and not even know it!
When you use our calculator, no documentation is required, and the results are instantly sent to your email address.
We’ll help you discover:
- The maximum amount of equity that you can release from your home in Jan 2022.
- How to get the most out of your plan.
- What will affect your calculation?
Why use us?
Our team consists of some of the most knowledgeable people in the field. We’ve spent countless hours reviewing more than 690 plan options, and we’ve used the latest technology to create this accurate tool for you to try.
So, are you wondering what will determine how much equity you can unlock? Find out now!
What’s Equity Release?
An equity release mortgage is a loan that you’ll take against the value of your home, while still having permission to live in your property. The loan and interest incurred is repaid when the oldest homeowner dies or moves into a facility for long-term care.
Here’s more information: What’s Equity Release?
How Does Equity Release Work?
Equity release words by your property being collateral against your home’s value. It’s available for homeowners older than 55, with the age of the youngest homeowner determining how much cash you can release.
Learn More: How Does Equity Release Work?
Types of Equity Release
There are 2 main types of equity release in Jan 2022, a lifetime mortgage and a home reversion plan.
A lifetime mortgage is the most common form of equity release and it allows you to secure the loan against your primary residence. A lifetime mortgage is tailored to run for your lifetime, during which the house remains 100% yours, and therefore stays in your name.
A home reversion plan is another option that you can consider. You raise money by selling all or part of your home while continuing to live in it until you die or move into permanent residential care.
Learn More: Different Types of Equity Release
Do I Qualify for Equity Release?
Before you start, let’s first ensure that you qualify for equity release in Jan 2022.
While there are various types of equity release, standard qualification criteria are:
- Owning a home in the UK.
- The youngest homeowner must be at least 55 years of age.
- Your home must be valued at £70,000 or more.
- You must live in your home permanently. The property needs to be your primary residence and can’t be unoccupied for more than 6 months at a time.
- You must be either mortgage-free or only have a small mortgage remaining. You’ll be required to pay off your mortgage with the equity release before keeping the balance.
MUST-SEE: Compare Equity Release Deals Here
3 Reasons Why You Should Use Our FREE UK Equity Release Calculator
- It’s the first step towards unlocking your dream retirement. It’s quick, easy, and you’ll get your results right away. The equity loan calculator is the perfect way to get a sense of the amount of cash you could unlock in just 8 seconds.
- We’ll protect your personal details. In addition, by using our calculator, you’ll get a FREE question and answer call from an equity release adviser from Age Partnership. This is a fantastic opportunity that we’re so pleased to share.
- We’ll instantly email your results. It’s that simple.
How Do You Calculate Equity Release?
To calculate the amount of equity you can unlock from your home, the following will be considered:
- The youngest homeowner’s age.
- The property’s value.
As previously mentioned, plans start for individuals or couples aged 55 or more. The maximum amount that someone who’s 55 can unlock is 29.5% of the value of their estate 1. Each year, that amount will increase at 1% on average, capping at 59.28%.
The Calculator Results Explained
Important note: While the information provided will be as accurate as possible, remember that everyone’s circumstances differ, and the best equity release company in the UK will offer different deals.
It’s only once you’ve had an up-to-date home valuation and been given an exact offer from a lender, that you will know the precise amount of equity that you’ll be able to unlock.
In addition, the precise equity loan interest rate that you pay will be determined by the amount of equity you agree to borrow.
What Percentage Can You Get on Equity Release?
As you know by now, the Loan to Value (LTV)3 that you’ll qualify for is very much determined by your age. To make things easier, we’ve done the calculations for you.
Here’s the percentage of the best equity release deals you can get if you’re healthy or fit the criteria for an enhanced lifetime mortgage.
Equity Release Loan-to-Value Table
| Age of the Youngest Homeowner | Standard Equity Release | Enhanced Lifetime Mortgage |
| 55 | 29.5% | 43.6% |
| 56 | 30.5% | 44.9% |
| 57 | 31.5% | 46.0% |
| 58 | 33.0% | 47.2% |
| 59 | 34.0% | 48.5% |
| 60 | 36.2% | 49.5% |
| 61 | 37.2% | 50.3% |
| 62 | 38.3% | 51.5% |
| 63 | 39.3% | 52.4% |
| 64 | 40.3% | 53.5% |
| 65 | 41.3% | 54.4% |
| 66 | 42.4% | 54.5% |
| 67 | 43.4% | 54.5% |
| 68 | 44.5% | 54.5% |
| 69 | 45.5% | 54.5% |
| 70 | 46.5% | 54.5% |
| 71 | 47.6% | 54.5% |
| 72 | 48.6% | 54.5% |
| 73 | 49.6% | 55.0% |
| 74 | 50.6% | 56.2% |
| 75 | 51.7% | 56.4% |
| 76 | 52.7% | 56.5% |
| 77 | 53.8% | 56.7% |
| 78 | 54.8% | 56.8% |
| 79 | 55.8% | 57.0% |
| 80 | 57.0% | 57.1% |
| 81 | 58.0% | 57.3% |
| 82+ | 58.2% | 57.7% |
Examples of Lifetime Mortgages on a £150,000 House
To make things even easier, we’ve calculated the amount of equity you could be able to release, based on your age.
Check this out:
At Age 55
- Perfect Health: Maximum equity release = £44,250 (£150,000 x 29.5%)
- Enhanced Lifetime Mortgage: Maximum equity release = £64,400 (£150,000 x 43.6%)
At Age 60
- Perfect Health: Maximum equity release = £54,300 (£150,000 x 36.2%)
- Enhanced Lifetime Mortgage: Maximum equity release = £74,250 (£150,000 x 49.5%)
At Age 70
- Perfect Health: Maximum equity release = £69,750 (£150,000 x 46.5%)
- Enhanced Lifetime Mortgage: Maximum equity release = £81,750 (£150,000 x 54.5%)
At Age 80
- Perfect Health: Maximum equity release = £85,500 (£150,000 x 57.0%)
- Enhanced Lifetime Mortgage: Maximum equity release = £85,650 (£150,000 x 57.1%)
At Age 90
- Perfect Health: Maximum equity release = £88,950 (£150,000 x 59.3%)
- Enhanced Lifetime Mortgage: Maximum equity release = £86,850 (£150,000 x 57.9%)
What Can Affect the Maximum Percentage?
As we’ve said, everyone’s circumstances differ. While we can give an estimate, there’s a lot that can impact the amount of equity available in your property.
Here are 9 factors:
Medically Underwritten Equity Release Plans
While illness can be terrible, there is a silver lining when it comes to releasing equity from your home. That’s because you may be able to release more equity if you’re suffering from a particular medical condition.
The lender will consider your lifestyle and medical conditions by sending you a simple questionnaire.
Great news!
You won’t need to endure a medical exam.
Lender Fees
When it comes to most equity release plans, you’ll have to settle a lender’s fee with your provider.
In general, you won’t need to pay this fee upfront. Most plan providers can deduct the fee from your loan amount or add it to the final tally.
Pro Tip: To obtain maximum equity, you should add these arrangement fees to the loan amount.
Equity Release Plans With Cashback
Some equity release plans also include cashback which will give you extra income with no interest.
You can use the cash in any way you wish, but a great option is to help you pay off the equity release fees associated with your plan.
In some cases, the cashback amount is fixed and won’t be determined by the amount of equity that you elect to release.
On the other hand, some plan providers will offer a percentage of the amount you select. This could be as much as 2% to 5%.
Joint vs. Single Equity Release
While the age of the youngest borrower will determine the amount you can release, some lenders might offer you a more favourable LTV if you apply as a couple rather than as an individual.
Most lenders require that the equity release application be made in joint names if an applicant is married.
However, consider applying in one name if:
- The property is only owned by one person in the couple.
- Your spouse has an alternative primary residence.
- The youngest applicant is below 55.
- The oldest spouse could get vastly favourable interest rates.
Pro Tip: If you’re married, it is advisable to release equity as a couple because one partner will be allowed to stay in the house when the other passes away.
Property Construction
The construction of your property might play a role in determining which lender will offer you an equity release plan.
While the rules have relaxed over the years, there are still some limitations regarding certain property types.
Let’s explain!
The loan is taken against your house, so the equity release lender needs to know that their investment is secure. The reason for this is that in most cases, it’s the sale of the home that’s used to pay off the equity release mortgage.
Therefore, the lender will want to ensure that the home will likely sell for a favourable profit.
A house that’s not built using bricks and stone, and isn’t made using a tiled pitched roof, might not qualify for all equity release plans. In addition, the LTV could drop as a result.
Property Location
Equity release plans are available to homeowners in most parts of the United Kingdom. Everyone on the mainland should be covered.
However, if you live in Scotland, there could be fewer plans available to you. And only 2 lenders have plans available in Northern Ireland, giving you far fewer options to find the best deal.
Finally, any island off of the mainland will have limited lenders who are available to assist.
Plan Features
As the industry has grown, equity release providers have started offering amazing offers and flexibility to stand out from the crowd.
These may include:
- Early repayment charge exemptions.
- Lower interest rates.
- A free valuation.
Pro Tip: Don’t be fooled by a flashy special offer. Remember to check out all aspects of your plan to determine which one will be best for you and your family. In addition, consult with a financial adviser who’s accredited with the financial conduct authority (FCA) before making any final decisions.
Having Lodgers
If you have friends, family members, children or other people living at home, you may not qualify for many of the equity release plans available.
However, this is not an issue in some cases, and you can all still live happily under the same roof. That being said, some lenders may limit the number of lodgers that you can have.
Second / Holiday Homes / Buy-to-Let
Our tool is based on your primary residence. You need to live there predominantly.
Good news!
There are equity release plan options for your second home, holiday home, or buy-to-let property.
In Conclusion
Now that you’ve got a sense of how much equity you could unlock, you’re probably wondering, equity release the pitfalls you must know?
It’s important to note that the industry is Equity Release Council2 regulated, whose role it is to protect the consumer. However, even so, there are pros and cons for you to explore, and it’s important that you weigh these up before making your decision.
Whether you go for a lifetime mortgage or rather a home reversion scheme, with the right advice and guidance, equity release can be a fantastic way to fund your retirement.
If you’re thinking of a different type of equity release, you can also check our retirement interest only calculator to see if it’s right for you.
Got Questions? Check These First
How Do You Calculate Equity Release?
How Much Equity Release Can I Get From My Property?
Editorial Note: This content has been independently collected by the SovereignBoss advisor team and is offered on a non-advised basis. Sovereignboss may earn a commission on sales made from partner links on this page, but that doesn’t affect our editors’ opinions or evaluations.
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