How Do I Qualify for Home Equity Release?

The first piece of criteria you will need to fulfil in order to qualify for a home equity release plan is to be over the age of 55 years old and obviously a homeowner.

If you are applying for a joint application, then the youngest person will need to be at least 55 years old as that is the minimum age as set out by the Equity Release Council (formally known as SHIP).

Once this has been confirmed then the next thing you will need to ensure is that your property is valued in excess of £75,000 as this is the minimum house value that will considered. Whilst it would not stop you releasing equity from your home, it would also help if your house was mortgage free, however this may not be essential and will depend on the value of the property and the size of any outstanding mortgage.

Normally if there is a mortgage on a property that's looking to release equity, then the value of the mortgage is normally added to the new 'loan' then cleared, so you will be adding your mortgage onto the amount of equity you release and simply paying that debt off with the new amount.

Should this be the case your independent financial adviser will be able to give you a much more accurate amount available once they complete their financial assessment of you and your partner (if it's a joint application)

Once this has been established and taking into consideration the age of the youngest applicant, your health will also need to be assessed as this could have a bearing on how much equity you can release against the value of your home.

It also needs to be noted that there is a minimum amount which has to be released and that number is £10,000 however you will not have to take the full amount if you don't need it, as it could be quite a significant amount if your property has increased in value over the years.

So to be very clear, as long as you agree to take the minimum amount of £10,000 then you can take however much you want as long as it does not exceed the maximum amount available.

The actual calculation of how much equity you can release is very complex and whist there are several 'calculators' available, none are particularly accurate as each and every person or couple who applies has very different circumstances, making it almost impossible to give you a specific amount, although an estimated amount may be possible.

So in summary, in order to confirm if you do actually qualify for a home equity release plan the youngest applicant will need to be at least 55 years old, be a homeowner with a minimum value of £75,000, take at least £10,000 and be prepared for an Independent adviser to gather all the necessary information in order to confirm what money you will be able to release and who will be the best company to deal with.

Releasing equity in your home is a very important decision so you will NOT BE RUSHED into making any commitment and we would always suggest that if you are unsure about anything,

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