Equity Release Eligibility – Do You Qualify?

Equity release is becoming more and more popular as homeowners look to access some of the monies tied up in their houses. With the increase in house prices over the years, many people are in a situation where they have most of their money tied up in their house. Equity Release appeals to many homeowners as it allows them to maintain full ownership of their home and release tax-free money. In this article, we go through equity release eligibility criteria and whether you would qualify.

Would you qualify for an equity release mortgage?

The factors that affect your eligibility:

  • Age of the youngest homeowner
  • Value of your property
  • Where you live
  • How much you would like released

In a nutshell, if you are 55 or over, and that’s for the youngest person if you are a couple and you own your home in the UK, you may well be eligible for an equity release mortgage.

General equity release eligibility requirements

  • The youngest person, if a couple, must be aged 55 or more for a lifetime mortgage
  • For a home reversion scheme, where lenders become co-owners of your house, the minimum age is 65
  • Your home needs to be valued at £70,000 or more
  • The property has to be in the UK
  • You must be a UK resident
  • The property needs to be your main residence and in good condition and of standard construction
  • Leasehold properties will have to have at least 75 years remaining on the lease
  • You will need to be mortgage free or release enough equity to pay off an outstanding mortgage or loan
  • Freehold and leasehold properties can be considered

How old do you have to be to qualify?

A couple is considered to be if you are married, cohabiting or in a civil partnership and the youngest person must be 55 or more if you require a lifetime mortgage. For a home reversion scheme, the minimum age of the youngest person has to be 65.

What types of property will be considered?

It can be a house, a bungalow, a flat or a maisonette although it must be of traditional construction with the walls made of brick, stone or block and the roof of concrete, slate or stone tiles. But there are specialist lenders who will consider other constructions. Flooding, subsidence or structural issues must not recently have affected it. Properties can be leasehold or freehold.

How can Paxton Equity Release help you?

Martin from Paxton Equity Release will be delighted to chat with you as to whether you would be eligible for an equity release mortgage and if it would be the right option for you and your family. Over a cup of coffee or tea, Martin will talk through with you your different routes for raising money to make sure an equity release mortgage is the right choice for you.

Please call Martin on 01892 617070 for a chat or email martin@paxtonuk.com


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