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How much equity can I release?

Simon Stanney - Equity release director

Simon Stanney

Equity Release Director

Last updated 5th April 2022

3 min read

How much equity you can release, if you’re eligible, is based on the value of your house. It’s usually between 20% and 60% of your property’s value. The maximum equity you can borrow depends on different factors, like the value of your home and your age.

a happy middle aged couple enjoying coffee on a sofa by the window

What impacts how much equity I could release?

There are two main things that providers look at when working out what your figure will be:

  • How much your property is worth - your equity release provider will arrange for your home to be professionally valued.
  • How long you're likely to live after taking out your plan - this is based on your age and health. If it's a joint application it will be based on the age and health of the youngest applicant.

When deciding how much equity you could release, providers will typically consider factors including:

  • Type of property construction – what materials the building is made of or if it’s a listed building
  • Condition of property
  • Debt secured against your property – for example the amount of outstanding mortgage (this will need to be paid off first)
Equity release calculator icon.

Use our 60 second equity release calculator

Use our 60 second equity release calculator

Use our equity release calculator

Use our 60 second
equity release calculator

Release tax-free cash from your home

What is the maximum amount of equity I can release?

Typically, most people release equity up to a maximum of £100,000. The maximum amount you can borrow with equity release is usually up to 60% of the value of your home according to MoneyHelper. The exact amount depends on your age, the value of your property, and the other factors mentioned above.

For example, if a 55 year old and 85 year old had the same property value, the 85 year old would be able to release more equity. This is illustrated in the table below.

Examples of how much equity you could release

The table below provides an idea of how much cash you could release if you’re eligible for equity release.

  Your home’s value
 Your age £100,000 £200,000 £300,000 £400,000 £500,000
55 £28,500 £57,000 £85,500 £114,000 £142,500
65 £40,000 £80,000 £120,000 £160,000 £200,000
75 £50,000 £100,000 £150,000 £200,000 £250,000
85 £58,000 £116,000 £174,000 £232,000 £290,000

*These figures are for illustration purposes only and are based on a lifetime mortgage. It is only an indication and isn't guaranteed. You should seek a personalised illustration and ask for more information. All figures are correct as of March 2021.

To get a better indication, try our equity release calculator. It can also give you an idea of when you could receive the money.

What if I already have equity release but want to release more money?

If you already have an equity release plan, you might still be able to release more money. You will need to speak to your provider to find out if you are able to release more equity.

They may be able to offer you a rebroking service to see if there’s a better plan with better rates.

There may be a period of time you have to wait before you can release more money and it may incur more costs so it’s important to get all the information from your provider first.

Many people take out a drawdown lifetime mortgage, which means they take an initial lump sum, followed by smaller amounts over time, depending on how much they need.

Is there an alternative to equity release?

Taking out equity release is a big decision so consider the pros and cons first. There are a number of alternatives including downsizing or moving to a less expensive area.

If you have any savings or investments, you could also use those to draw upon. Make sure you consider your alternative options and speak to a professional financial adviser.

You’ll also want to talk to your family, as it will reduce the inheritance you can leave. Have a read through our equity release guide to explore the details.

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