Equity release criteria
*Updated February 2025*
Am I eligible for equity release?
If you're considering equity release as a way to raise some extra funds, you will need to meet some straightforward eligibility criteria. As a minimum, you should be aged 55 or over and own a home in the UK worth at least £70,000.
To get a better idea of whether you may be eligible for equity release, ask yourself these questions:
- About you:
- For a lifetime mortgage, are you at least 55 years old? If you're borrowing jointly, are you both 55 or over?
- For a home reversion plan, are you at least 65 years old? If you're applying jointly, are you both 65 or over?
- About your home:
- Do you own the property you intend to release equity from?
- Is this property in the UK?
- Is your property worth at least £70,000?
- Is your property in reasonable condition?
- About people living with you:
- If you have dependents living with you in your home, are you aware that they will not be able to continue living there when you die or move permanently into long-term care?
If you can answer ‘yes’ to all these points, then equity release could be an option worth considering.
What eligibility criteria do equity release lenders consider?
Equity release providers will also consider these criteria when deciding whether to accept your application:
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Your age when you apply
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Ownership and use of the property
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Other people living in the property
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Any remaining mortgage on the property
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The location of the property
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The value of the property
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How the property is constructed
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The condition of the property
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How much equity you want to release
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The state of your health when you apply
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Your credit history
Equity release eligibility in more detail
Now let's take a look at the main equity release eligibility criteria in more detail.
The age criteria for equity release depends on the type of plan you apply for.
- Minimum age criteria for equity release
The minimum age for a lifetime mortgage is 55. This means that you, or if you own your property jointly, the youngest homeowner must be at least 55 when you apply.
The minimum age for a home reversion plan is 65. This means that you, or if you own your property jointly, the youngest homeowner must be at least 65 when you apply.
When deciding how much money they can lend you, providers will base their calculations on the age of the youngest applicant. So, if you co-own your property with someone younger than the minimum age limit, they will need to be removed from the deeds before you can arrange equity release.
- Maximum age criteria for equity release
Some lenders will only accept applicants up to a certain age (ranging from 85 to 95), although many have no upper age limit.
The older you are, the more cash you can usually release, as your life expectancy obviously reduces as you age.
Here are the maximum age criteria of some of the leading lifetime mortgage lenders:
Your eligibility for equity release will depend on the type of property you own and the specific requirements of each lender.
- Freehold properties - most houses in the UK are freehold and meet the eligibility criteria for most lenders.
- Leasehold properties - most flats in the UK are leasehold. This means that while you own your actual property, the freeholder owns the land or building it sits in. If you own a leasehold property with only a limited time left on the lease, you may not meet the eligibility criteria of some lenders.
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Second homes - The same applies to properties that are not your main home, such as buy-to-let properties and holiday homes. For a rental property with tenants in place, your lender will probably insist they commit to a six-month assured tenancy agreement. For equity release on a holiday home, you will probably need to guarantee that it is not rented out for more than 4 weeks at a time.
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Ex-local authority properties – some equity release providers will consider an ex-local authority property, provided you own the freehold or are able to purchase the freehold from the council. Lenders may also impose a higher value minimum property value on properties of this type.
An independent equity release specialist such as Age Partnership, will be able to advise you on which lenders are likely to consider equity release on leasehold properties, properties with tenants, and holiday homes.
Anyone living with you in your property (other than a joint applicant), may be affected when you take out equity release. This may include your children, a lodger or even your partner.
To continue living with you, these individuals may be required to waive any right to stay in your property when you die or move into long-term residential care. This waiver also applies to anyone who moves into your property in the future.
If you take out equity release alone and go on to get married, you may not be able to add your partner’s name to your plan. This could leave them having to sell your shared home to pay off the lifetime mortgage or home reversion plan when the time comes.
If you've already paid off your mortgage, you will be eligible for equity release.
If you still have an outstanding mortgage on your property, you’re likely to be eligible, but it may depend on how much is outstanding. The cash you release must first be used to pay off your remaining mortgage, then the money left over will be yours to spend as you wish.
If your home is in England (including the Isle of Wight), Wales or Scotland, you will qualify for equity release from most, if not all, providers. However, some providers exclude residents of the Isle of Man and, if you live in Northern Ireland, your choice of provider is likely to be very limited.
Your equity release provider will also look carefully at any buildings or operations near your property that could affect its value and saleability – sewage works, for example, or a substation.
Your property must be worth at least £70,000 to be eligible for equity release, with some providers setting a higher minimum value. If you want to get an approximate value for your home, visit Money Saving Expert, Yopa, or Zoopla.
Technically there is no upper limit, but some providers may require additional underwriting on properties over £1 million.
Equity release lenders will consider most 'standard construction' properties. That means houses, flats, and bungalows built of brick or stone, with pitched, tiled, or slate roofs.
Until recently it was practically impossible to get equity release on properties that didn't fit this description. However, some providers are now more tolerant of non-standard features. For instance, if your home has a flat roof or an annexe, or if it's partly used for business, you may still be accepted.
Your home must be in good order when you apply for equity release and then maintained to a reasonable standard.
A lifetime mortgage is usually repaid by the sale of your home when you – or the last borrower – dies or moves into long-term care.
With a home reversion plan, the equity release provider owns your home – or a share of it – and you continue to live in your home as a tenant.
This is why providers look closely at the condition and saleability of your property before agreeing to lend you any money.
You can typically release between 20% and 55% of your home's value tax-free. How much equity you can release will vary according to your age, the value of your home, and the amount of equity you hold in it.
The minimum you can release is £10,000 and some providers also have a maximum lending limit.
Find out how much you could release
Your state of health could affect your eligibility for equity release, but not in the way you might expect. If you have any life-limiting health issues, providers will usually offer you more, on the basis they are likely to be repaid sooner.
A full medical is not required for equity release. You’ll usually be asked to complete a simple health questionnaire.
Generally, equity release providers are also quite tolerant of those with a bad credit history. You may not have to undergo a credit check, but ultimately this will depend on the lender and the seriousness of your situation.
For example, if you’ve been declared bankrupt, you won’t be accepted for equity release until you’re discharged. Or if there’s an IVA or County Court Judgement against you, your lender may require this to be paid off from your equity release loan.
Equity release has one major advantage over a traditional mortgage: the provider doesn’t need to take account of your income or expenditure because you’re not required to make any regular repayments – it’s entirely your choice whether you do so.
Can you be refused equity release?
Provided you meet all the equity release criteria set out above, your application is unlikely to be refused, particularly if you have a specialist adviser to support you.
However, there are certain circumstances that could lead to you being refused. For example:
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Your home is made of non-standard construction materials: the Equity Release Council recommend you make your adviser aware of any non-standard construction materials, such as concrete, timber or metal-framed buildings, although very high-quality, modern builds may be acceptable to some providers.
Next steps
So, if you’re considering equity release and are comfortable you meet the eligibility criteria, use our free and easy-to-use calculator to see how much equity you could release from your home.
Or to discuss your options with an equity release specialist, call Age Partnership on 0800 368 8466 for a free consultation.
Try the calculator