Shared Ownership Equity Release 2025: What to Expect

The requirements for equity release on shared ownership properties can vary depending on the provider.

However, typically, the main criteria are that you are over 55, own at least a 75% share in your property, and the property is valued at over £70,000.

The precise requirements can vary, so it is essential to check with individual providers.

Often, shared ownership properties need to be mortgage-free, or you need to use the equity release to pay off any existing mortgage.

Additionally, the property should be in good condition to qualify for equity release.

It is always best to consult with professionals before making any decisions.

Yes, you can obtain equity release on a shared ownership property, but there are conditions.

Firstly, you need to be the majority shareholder of the property, usually owning 75% or more.

Then, the property needs to meet certain criteria set by the equity release provider.

Keep in mind that some providers may not offer equity release on shared ownership properties.

Therefore, it is crucial to research thoroughly, or consider receiving professional advice, to understand the available options.

You can remove the joint owner from your property by refinancing and letting the owner relinquish his or her ownership rights.

It is essential that you inform your provider should you get a new partner.

If you have a new partner or spouse, you can add them to your plan, provided they meet the lender’s criteria.

If your new partner was younger than 55 when you took out your equity release loan, you will not be able to add them to your plan.

If, however, they were over 55 at the beginning of your loan and are now a joint property owner, then they can be added to your lifetime mortgage upon payment of the legal fees.⁶

Yes, you can obtain equity release if you co-own a property as tenants-in-common.

When the owner passes away, your lender may restrict future changes to the plan, which means you may not get access to borrowing additional money.

Run through your options with an equity release advisor or broker before making any decisions.

No, you can not take out an equity release plan in your name alone if you do not own the entire property.

Lenders require a single borrower to have 100% property ownership to consider equity release.

In this situation, owning only a portion of your property with either a developer or local council as a co-owner means you would not be able to take out equity release.

If, however, you co-own or jointly own your property, you could take out a lifetime mortgage in both owners’ names.

Yes, one person can take out a standard loan on a jointly-owned property.

However, all the co-owners must agree and give consent to it.

This is not to be confused with taking out an equity release loan against a jointly owned property.

In such a case, both owners would need to agree and be part of the loan.

Whether equity release is a good idea for shared ownership properties depends on individual circumstances.

If you own a significant share of the property and need access to funds, it can be a viable option.

It allows you to retain use of your home while unlocking the tied-up value.

However, equity release can have implications for inheritance and may affect means-tested benefits.

The decision should be carefully considered, and it may be beneficial to discuss your options with an experienced professional.

Your husband can refinance the house without you, but only if he is the sole owner.

As a sole owner, your husband does not need your consent or signature to refinance the home.

If you are joint property owner, then your husband would require your consent to refinance and vice versa.

Yes, you can move from one shared ownership house to another.

A shared owner can sell the lease anytime if they wish to move houses.⁷

You will need to send a written notice of intent to move to the landlord.

You will then have the option of selling your lease for the amount you paid or buying the remaining share of the property and then selling the property as a whole.

A solicitor will need to be appointed for the process.

You can sell a shared ownership home with equity release, as long as the figures and any additional cash you have make the sums work for the lender.

It is essential to notify your provider beforehand.

Be aware!

An early repayment charge may apply, and these can be substantial.

Typically though, an equity release scheme is repaid via the sale of the property when the homeowners enter long-term care or pass away.

Equity release with shared ownership comes with specific risks.

High on that list is the reduction of inheritance, as the equity release provider will claim their share from the property when it is sold.

This could potentially limit what you can pass on to your loved ones.

Moreover, your ability to move or sell could be affected, and it may impact your eligibility for means-tested benefits.

It is crucial to understand all risks and potential implications before deciding on equity release.