Equity Release Calculator in Dec 2021

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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 Dec 2021 With Our UK Release Equity Calculator. It's Free & It's Fast. Get Started Now.

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Use Our FREE Equity Release Calculator

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 unlock from your home in Dec 2021.
  • How to get the most out of your plan.
  • What will affect your calculation.

Why use us?

Our team consists of some of the leading experts 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!

qualified

What’s Equity Release?

An equity release mortgage is, in a nutshell, a loan plus interest that is paid back to the lender when the homeowner passes away or goes into permanent care. The homeowner’s family usually pays back the cash released, and the interest incurred, from the sale of the home in question.

Learn More: What’s Equity Release?

How Does Equity Release Work

Equity release is available for individuals or couples over the age of 55, with the youngest homeowner’s age determining the amount of equity that can be released. It is important to note that some equity release schemes may require the homeowner to be 60 or older.

Learn More: How Does Equity Release Work?

Types of Equity Release

There are 2 main types of equity release in Dec 2021, a lifetime mortgage and a home reversion plan.

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.

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 Dec 2021.

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

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3 Reasons Why You Should Use Our FREE UK Equity Release Calculator

  1. 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 how much equity you could be eligible to unlock in just 8 seconds.
  2. 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.
  3. We’ll instantly email your results. It’s that simple.

property value

How Do You Calculate Equity Release?

To calculate the amount of equity you can unlock from your home, the following will be considered:

  • The age of the youngest homeowner.
  • The value of the property.

As previously mentioned, plans start for individuals or couples who are aged 55 or older. 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 qualify for an enhanced lifetime mortgage.

Equity Release Loan-to-Value Table

Age of the Youngest Homeowner Standard Equity ReleaseEnhanced Lifetime Mortgage
5529.5%43.6%
5630.5%44.9%
5731.5%46.0%
5833.0%47.2%
5934.0%48.5%
6036.2%49.5%
6137.2%50.3%
6238.3%51.5%
6339.3%52.4%
6440.3%53.5%
6541.3%54.4%
6642.4%54.5%
6743.4%54.5%
6844.5%54.5%
6945.5%54.5%
7046.5%54.5%
7147.6%54.5%
7248.6%54.5%
7349.6%55.0%
7450.6%56.2%
7551.7%56.4%
7652.7%56.5%
7753.8%56.7%
7854.8%56.8%
7955.8%57.0%
8057.0%57.1%
8158.0%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%)

medical exam

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 regulated by the Equity Release Council2, 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 opt for a lifetime mortgage or a home reversion scheme, with the right advice and guidance, equity release can be a fantastic way to fund your retirement.

Equity Release Calculator

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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Equity Release Calculator

Value of Your Home?

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HOW MUCH EQUITY CAN YOU RELEASE?

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Equity Release Calculator

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rachel w

Rachel Wait
Personal Finance Journalist

Rachel is an experienced finance journalist and editor with a particular interest in personal finance and consumer affairs. She has vast experience writing about money issues, property, insurance, and consumer affairs, and you’ll find her articles regularly featured in top media and newspaper publications.
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Written by
John Lawson
Founder SovereignBoss

John is passionate about education and has made it his life-long mission to assist UK citizens on their future financial options, with a specialist interest in equity release, and SovereignBoss is the natural extension of this passion.
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Reviewed by
Francis Hui
Senior Risk Manager

Having held various high-level roles across the industry, Francis is truly an expert in aiding UK citizens in their financial decisions and risk analysis. His unique insight and statistical knowledge make him the perfect person to help you take your financial future to the next level.
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Katherine Read
Consumer Affairs Writer

Since joining the editorial team at SovereignBoss, Katherine has become focused on bringing transparency to finances and opportunities for those approaching retirement age. She writes on the topics of equity release, home reversion, and mortgages.
nicola

Nicola Date
Writer & Journalist

Nicola is a financial writer for SovereignBoss and is passionate about the opportunities that equity release can open up for homeowners. Her extensive business experience and deep understanding of the industry means that she’s always up-to-date with the latest developments.

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Equity Release Calculator

Value of Your Home?

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