Eligibility checker

To be eligible for equity release, your property must be located in the UK. A lifetime mortgage is a loan secured against your home and eligible properties include houses, flats and bungalows.

The property itself must meet the lender's criteria. Some aspects of construction can make lenders less willing to provide you with equity release.

The lender will arrange for an independent survey to be conducted on the property to help determine the property's eligibility.

The lender will also consider the surrounding area and anything near your property. For instance, your property could be excluded from equity release if it's in too remote a location or is located in a flood zone or above a commercial premises.

Most lenders require your property to meet a minimum value threshold, typically around £70,000.

If you want more guidance on how the location of your home could affect your eligibility for equity release, then get in touch with one of our expert advisers.

Lenders need your property to be able to sell when your equity release plan comes to a close. For that reason, your home needs to be in a liveable condition for you to be eligible for equity release.

If your home needs major renovations or is uninhabitable in any way, then your application could be denied. An independent surveyor will assess your property as part of your equity release application and provide a valuation report to the lender for equity release purposes.

Your credit score doesn't affect your eligibility for the majority of equity release products.

Lenders look at your credit score when they want to know if you have a history of repaying debts but for the majority of products, there is no expectation for you to repay the money that you unlock through equity release (although you can choose to make payments if you want). Instead, the loan, plus compound interest, is typically repaid through the sale of the property when the last remaining applicant passes away or moves into long-term care. However, some lenders have restrictions if you have held CCJ’s, IVAs or been made bankrupt.

Affordability won't affect your eligibility for a standard lifetime mortgage or home reversion as the loan is based on property value and the youngest applicant's age.

For a payment-term lifetime mortgage an affordability assessment is made to determine eligibility. For interest-reward lifetime mortgages affordability will be assessed to ensure the viability of committed payments.

Typically, the minimum age for equity release is 55 years old.

If you own your home with a partner, then you'll need to apply as a couple. You must both be aged 55 or older to be eligible. Lenders consider the age of the youngest applicant when calculating how much you could release.

While you may be eligible for a lifetime mortgage at age 55, the number of products available to you and the amount you can release increases as you get older.

To qualify for equity release, you must hit certain equity release criteria:

• Property Location: Your home must be located in the UK.

• Property Type: Eligible properties include houses, flats, and bungalows. The property must meet the lender's criteria, such as being of standard construction and in a suitable location.

• Property Condition: Your home must be in liveable condition, with no significant structural issues or required major renovations. An independent surveyor will assess its suitability.

• Age of Applicants: Equity release minimum age must typically be at least 55 years old.

• Ownership: You must own the property outright or you need to repay any outstanding mortgage balance and/or any loan secured against the property with the equity release funds. Meeting these requirements ensures that the property can serve as sufficient security for the loan.