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How much equity can I release?

Simon Stanney - Equity release director

Simon Stanney

Equity Release Director

Last updated 14th April 2020

3 min read

If you’re eligible, the amount of equity you can release is usually between 20% and 55% of the value of your home. This is different for everyone and depends on different factors including the value of your home and your age.

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)

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

Is there a minimum or maximum amount I can release?

Typically, most people release between £10,000 - £100,000. The minimum amount you can release is usually £10,000 because providers want to make sure it is financially justifiable.

The maximum amount you can borrow with equity release is usually up to 55% of the value of your home according to Money Advice Service. 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 £27,000 £54,000 £81,000 £108,000 £135,000
65 £40,000 £80,000 £120,000 £160,000 £200,000
75 £50,000 £100,000 £150,000 £200,000 £250,000
85 £55,000 £110,000 £165,000 £220,000 £275,500

*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 January 2020.

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.

Want to talk to somebody about Equity Release?

Call our UK helpline FREE on 0800 633 5566 or request a call back

Here's the information that you need to know about who we are and the other companies that we work with in order to provide our products and services.

Who are SunLife and who provides the SunLife Guaranteed Over 50 Plans?

SunLife Limited distributes financial products and services , registered office: 1 Wythall Green Way, Wythall, Birmingham, B47 6WG, United Kingdom (registered in England and Wales, no. 05460862). SunLife Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (registration no. 769427).

Phoenix Life Limited trades as SunLife and is the provider of the SunLife Guaranteed Over 50 Plan life insurance policies. Phoenix Life Limited’s registered office is at 1 Wythall Green Way, Wythall, Birmingham, B47 6WG, United Kingdom (registered in England and Wales, no. 1016269).

Who provides the Funeral Benefit Option?

If you choose to add Funeral Benefit Option to your Guaranteed Over 50 Plan, Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

Who provides the Funeral Plans?

Dignity Funerals Ltd arranges and provides the funeral services, registered office: 4 King Edwards Court, Sutton Coldfield, West Midlands, B73 6AP (registered in England and Wales, No. 00041598). Dignity Funerals is not authorised or regulated for this activity by either the Financial Conduct Authority or the Prudential Regulation Authority. Dignity Funerals Ltd is a member of the National Association of Funeral Directors.

The life insurance policy that pays for your funeral will be provided by Phoenix Life Limited, trading as SunLife.

Who provides SunLife Pet Insurance

SunLife Pet Insurance is arranged and administered by BDML Connect Limited. BDML Connect Limited is authorised and regulated by the Financial Conduct Authority (No. 309140). Registered in England and Wales Number 02785540. Registered Office: 45 Westerham Road, Bessels Green, Sevenoaks, Kent, TN13 2QB.

Who provides SunLife Home Insurance

SunLife Home Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.

Who provides SunLife Car Insurance

SunLife Car Insurance is arranged and administered by BISL Limited and underwritten by a panel of insurers. BISL Limited are an intermediary authorised and regulated by the Financial Conduct Authority. Registered in England no. 03231094. Registered office Pegasus House, Bakewell Road, Orton Southgate, Peterborough PE2 6YS.