How much equity release will I get?
*Updated January 2024*
If you're aged 55 or over and own your home, you could potentially release between 20% and 60% of the equity in it. To calculate how much equity you can release, the lender will consider two things first - the value of your property and your age (or that of the youngest homeowner).
Your age will determine how long you are likely to have the plan for and how much you are able to borrow. Lenders generally won’t see any return on equity release until you die or move out into long-term care. So, the younger and healthier you are when you release equity, the longer it may take for the lender to see a return and consequently the amount you can borrow may be less. You can use the calculator below to see how much cash you may be able to release.
Equity release providers will also consider:
- Whether you own the property outright - if you still have a mortgage or any other debt secured against your home, you will need to pay this off first with the money you release.
- The construction type and condition of your home.
To find out how much you could release from your home, use our equity release calculator below.
How to work out how much equity you have in your house?
To work out how much equity you have in your home, all you need to know is the market value of your property and the outstanding balance of any existing mortgages. You then subtract the mortgage balance from the property value and the figure you are left with is your equity.
- Property value - £300,000
- Existing mortgage - £50,000
- Equity - £250,000
If you don’t have a mortgage on your property, the full value would be the amount of equity you have in your home.
If you want to get an approximate value for your home, visit Money Saving Expert or Yopa or Zoopla.
Does your age affect what percentage of equity can you release from your house?
The percentage you can release from your house generally increases with age. The older you are, the more you can release. For example, a 55 year old may be able to release up to 24% whereas a 70 year old could release as much as 41%.
The value of your property will also be considered as well as its construction and condition.
So how much equity can you release?
All equity release providers have a minimum lending amount which is typically £10,000 to £15,000, although premium schemes can have much higher thresholds. The maximum amount you can release will depend on the value of your property, your age and in certain circumstances, your health and lifestyle.
The following gives you a guide as to how much equity you could release get from your home. For a more accurate figure and personalised illustration, use our equity release the calculator.
Equity release home value guide
Try the calculator
|Age of youngest homeowner
|Value of your home/indicative loan value
More information on the topics raised in this article
A note from our expert, Ashley:
The amount of money you can release from your home will depend on the equity you have in your home, your age and your health. Always take specialist equity release advice to ensure equity release is a good option for you.
Can your health affect how much equity you can release?
If you have health concerns, you may be able to release a higher percentage of equity from your property with a type of equity release called an enhanced lifetime mortgage.
The amount your equity release provider is willing to lend is partly based on life expectancy and how long it will be before the loan is repaid. Therefore, the shorter the life expectancy, the more equity you can release from your home.
Here are a few health and lifestyle examples, that might increase how much equity you could release if you qualify for an enhanced lifetime mortgage:
|Lifestyle examples that may affect how much equity you can release:
|Health examples that may affect how much equity you can release:
- Your weight and height (your body mass index)
- Whether you smoke
- If you take medication
- High blood pressure
- Exisiting heart condition or angina
- Multiple sclerosis
- Parkinson's disease
How much cash could you release with an enhanced lifetime mortgage?
If you are in good health then the standard maximum loan to value applies, however, if you qualify for an enhanced lifetime mortgage you may be able to borrow more, so be honest about any health issues that affect you. They could potentially give you more favourable terms, as shown in the examples below. For a more personal quote, please get in touch:
Age 60: Standard maximum 36% Medically enhanced maximum 49%
Age 70: Standard maximum 46% Medically enhanced maximum 54%
Age 80: Standard maximum 57% Medically enhanced maximum 57%