If you’ve found yourself thinking, “can I get Equity Release?” and “who can get Equity Release?”, you’re in the right place. Here are the eligibility rules for Equity Release, ensuring you have all the information you need to understand this financial option.
Age and homeownership: The basic criteria
The cornerstone requirements for Equity Release are being over the age of 55 and owning a home. These are non-negotiable starting points for considering a Lifetime Mortgage.
In cases of joint ownership, the youngest homeowner’s age is what counts. Non-owner residents may need to sign a “deed of consent” to stay in the home once the mortgage is secured
What makes your home eligible?
Not all homes will fit the bill for providers, who each have their own set of standards. A common threshold is a minimum property value of £70,000. Other factors like location, property type, and even proximity to commercial establishments play a role in eligibility.
Leasehold considerations
Leaseholders, take note: the terms of your lease can influence your ability to secure a Lifetime Mortgage. Remaining lease term, ground rents, and service charges are all part of the equation.
Navigating shared ownership
Some lenders give the green light to shared ownership properties and may even allow you to buy out the remaining share.
Protecting the vulnerable
A crucial aspect of the Equity Release process is ensuring applicants are making informed, unpressured decisions. Those unable to demonstrate understanding of the arrangement, termed as “without capacity,” are ineligible. However, those with Lasting Power of Attorney can proceed on an owner’s behalf, under strict scrutiny.
Equity Release can be a pathway to financial flexibility in retirement, but it’s essential to navigate the eligibility landscape with clarity and caution.
