If you’re 55 and over and own your own property, it might hold the key to a happier and more comfortable retirement. Find out how much equity you could release.
Last updated 21st May 2019
Make the most of your biggest asset
Many of us spend our working lives paying into our home – so wouldn’t it be great if we could make it work harder for us in our later years? Well, if you’re 55 and over and own your own property, it might just hold the key to a happier and more comfortable retirement. There could be a sizeable cash sum tied up in there, ready and waiting to be released…
How can I release money from my house?
If you’ve been wondering how to turn your bricks and mortar into cash for your retirement, perhaps you’ve thought about upping sticks and moving to a smaller property (downsizing). But what if you don’t want to give up the home you love to get the retirement you deserve?
For those longing to carry on living in the home they love (and avoid paying expensive stamp duty fees), there’s another way. You could choose to unlock a cash sum through equity release instead – which will give you a tax-free lump sum or smaller cash injections to top up your income. Read more about what equity release is.
You won’t have to fork out for monthly repayments (although you may have the option to do so if you wish). The loan plus interest will simply be repaid when your sell your home. That’s usually when you pass away or move into long-term residential care.
It’s perfectly safe, and there’s no need to worry about going into negative equity (that’s one of the common equity release myths). Unlike with downsizing, you’ll be able to remain in your current home for as long as you like. And there isn’t a removal van in sight.
So, how much equity can I release?
By now, you’re probably wondering ‘how much can I release from my home’? Usually, you can release between 20% and 50% of the equity (or value) in your home – but it’s different for everyone and depends if you're eligible for equity 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 send a surveyor over to give you a professional valuation.
- How long you’re likely to live after taking out your plan – this is based on your age (and that of your spouse if it’s a joint application) and your health. Some providers could offer you a bigger sum if you have (or have had) a medical condition, or if you smoke.
FREE equity release calculator
Forget about tricky calculations. We’ve made it quick and easy to see how much cash you could access – with our equity release calculator. Just pop a few details into our equity release calculator online, it’ll do the sums for you, and give you an estimate in seconds. That’s all there is to it.
In the meantime, a quick look at the table below will give you a rough idea of how much cash you could be sitting on…
|Your home’s value|
*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 October 2019.
It’s somewhere to live AND a source of cash
Once you’ve released the cash from your home, it’s up to you how you spend it – whether it’s to boost your pension, pay for the home improvements you’ve dreamed of, or see your loved ones enjoy their inheritance during your lifetime. It could be worth having a little think about when you have some spare time – and to help we’ve compiled a list of dream home improvements to inspire you.
Remember, taking out equity release is a big decision – so consider the pros and cons first. 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 handy equity release guide to explore the details.