How much equity could I release?
Equity release explained
If you’re 55 or over, equity release might be an option you’re exploring to provide you with money during your retirement.
Equity release means you can take the money you release as a lump sum, in smaller amounts or as a combination of both. It also means you can continue living in your home whilst enjoying a more comfortable retirement.
Our equity release calculator allows you to quickly find out how much tax-free cash you could unlock from your home.
Our equity release calculator does not constitute financial advice and shouldn’t be taken as an offer. To understand the features and risks ask for a personalised illustration.
HOW THE EQUITY RELEASE CALCULATOR WORKS
Using our calculator
With that information in mind, our specialist advisers are on hand to walk you through your options.
- Step 1 - Have some basic details about you and your property ready. We’ll ask you about your estimated property value and how much mortgage you have left.
- Step 2 - Complete our simple to use calculator in less than five minutes.
- Step 3 - View your results.
- Step 4 - Our advisers are on hand to discuss your options.
EQUITY CALCULATOR TIPS
Handy hints for using the equity release calculator
- Allow yourself a couple of minutes to complete.
- You’ll just need some basic details about yourself and your property.
- Make sure all of the details entered are correct so that we can contact you ready to provide the best advice for your individual circumstances.
Try our free equity release calculator
EQUITY RELEASE CONSIDERATIONS
Benefits and things to consider
Equity release can provide greater financial flexibility in later life, but it’s important to understand both the advantages and the potential drawbacks before making a decision. Taking the time to weigh these up can help you decide whether it’s the right option for your circumstances.
Benefits
Equity release can offer a range of advantages depending on your needs and goals in retirement:
- Access tax-free cash from your home: Release money tied up in your property without having to sell or move out.
- Stay living in your property: You can remain in your home for life, or until you move into long-term care.
- No required monthly repayments (for most plans): With many lifetime mortgages, there’s no obligation to make monthly payments, although some plans offer flexibility.
- Flexible ways to take your money: Choose a lump sum, drawdown, or a combination of both depending on your needs.
- Use the money however you choose: Whether it’s supplementing retirement income, home improvements, or supporting family.
Things to consider
As with any financial decision, there are important factors to be aware of before proceeding:
- Interest can build up over time: If you don’t make repayments, interest accrues on the loan, which can significantly increase the total amount owed.
- It may reduce the value of your estate: Equity release will reduce the amount of inheritance you may be able to leave to loved ones.
- It could affect means-tested benefits: Releasing cash could impact your eligibility for certain benefits, depending on your circumstances.
- Early repayment charges may apply: If you decide to repay the loan early, there may be costs involved depending on your plan.
- You must repay any existing mortgage: Any outstanding mortgage on your property will usually need to be cleared using the funds released.
- There may be alternative options: Depending on your situation, other financial solutions could be more suitable, which is why taking advice is important.
What equity release products could you get?
Equity release products aren’t just limited to a lump sum. There are options available to you
Lifetime Mortgage Lump Sum
A lifetime mortgage lump sum gets you a single cash sum, using money from your home. There’s no requirement to make monthly payments, as the loan will be paid back when the property is sold.
Lifetime Mortgage Drawdown
If a lump sum isn’t what you’re looking for, then the drawdown option may be right for you. You can release cash over time when you need it.
Home Reversion Plans
With home reversion, you sell part or all of your property to a home reversion provider. They give you a tax-free lump sum, and you get to live in the property rent-free, maintaining the property as you would normally.
Please note LV= does not offer advice on home reversion plans at this time.
AMOUNTS FOR EQUITY RELEASE
How much equity could you release?
The amount you can release depends mainly on your age and your property value. This is often expressed as a percentage of your home’s value, known as loan-to-value (LTV).
Here’s a rough guide based on typical market averages:
| Age | Property Value | Typical LTV | Estimated Release |
|---|---|---|---|
| 60 | £300,000 | ~25% | ~£75,000 |
| 65 | £400,000 | ~30% | ~£120,000 |
| 70 | £500,000 | ~35% | ~£175,000 |
Who is eligible for equity release?
Before using the calculator, you’ll typically need to fulfil certain criteria in order to qualify:
- Be aged 55 or over.
- Own your home (with little or no mortgage remaining).
- Have a property worth £70,000 or more.
- Live in the property as your main residence.
If you’re applying jointly, the youngest applicant’s age is used (which is worth bearing in mind for your application). Learn more about equity release with LV= by reading our guide to equity release.
Thinking about equity release? Why not start with a free eligibility check.
Our equity release advice service
To help you access money from the value of your home, we provide an equity release advice service. Everything we do at LV= is focused on giving you honest advice and finding you a suitable equity release plan from the whole of the market with the fastest, friendliest service.
Equity release may involve a home reversion plan or lifetime mortgage, which is secured against your property and may reduce the value of your estate and impact funding long-term care. To understand the features and risks ask for a personalised illustration. Equity release requires paying off any existing mortgage. Any money released, plus accrued interest, would be repaid when you die or if you're moving into long-term care.
We believe that everyone should have access to independent, regulated financial advice. It should not be seen as a luxury for the few who can afford it or who are experienced in using it. Why? Because it provides financial and emotional benefits.
Good advice ensures better financial outcomes and frees people from the worry of making complex decisions that could have long-term implications.
Equity Release may not be right for everyone and there may be alternative options to consider. As part of our service, we will highlight this to you if appropriate.
Try our free equity release calculator
Equity release faqs
Find the answers to some of the commonly asked questions about equity release or using our equity release calculator below.
Once you’ve received your estimate:
- Speak to a qualified adviser
- Receive a personalised illustration
- Review your options carefully
- Decide what’s right for your circumstances
Financial Advice on equity release
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