Can I arrange equity release on a jointly owned property?
Yes, you can typically do equity release on a jointly owned property, providing the youngest applicant is 55 or over.
If two people are on the title deeds for your property, say yourself and your spouse, then you will have to apply jointly for equity release. One homeowner of a jointly owned property cannot choose to arrange a single equity release plan in just their name.
Arranging equity release on a jointly owned property is one way to raise the money you need, with the reassurance about your ongoing living arrangements. This reassurance is provided by the Equity Release Council’s guarantee that you have the right to stay in your home for life, or until the last residing homeowner either passes away or permanently moves into long-term care.
It is only at this point that the home needs to be sold, with the proceeds used to repay the loan plus the accrued interest. This structure offers peace of mind for couples, as the property does not have to be sold after the first person dies or goes into care, ensuring continuity and stability for the remaining homeowner.
If you jointly own a home and one of you is under 55, you would need to remove the youngest person from the title deeds, with their consent. You would then make a single application as sole owner. This is something to consider carefully, with the support of a solicitor, as there are implications beyond the equity release application for changing from joint to sole ownership.
Equity release for ‘tenants in common’ properties
Joint ownership equity release is possible on both ‘joint tenants’ and ‘tenants in common’ properties but there are some things to be aware of when it comes to ‘tenants in common’.
First, because the share of one owner in ‘tenants in common’ arrangements is left according to their will, it is much simpler when there’s an equity release plan if their share is left to the surviving owner.
If the deceased leaves their share to someone other than the surviving partner, the equity release lender may place certain restrictions on the plan. They may for example limit or disable access to any facility to borrow more money via a drawdown facility.
Also, be aware that if the deceased has not left a will, their share of the property would go to their next of kin. If this is not the surviving owner, they may be unable to live in the property and this could have implications on the equity release plan.
It is therefore important to discuss these matters with your equity release adviser if you own a property on a ‘tenants in common’ basis. If you then decide that you wish to change from tenants in common to joint tenants, this needs to be done by a solicitor on your behalf.
Please see our guide for more information: Equity release for tenants in common
What if we live together but I own the house alone?
If you own your house alone and want to add your spouse or partner onto your deeds, this can often be done during your application for equity release. Joint ownership will mean that both of you will have the right to stay in your home until you pass away or move into long-term care.
To add a spouse or partner to your property deeds, you or your solicitor will need to complete a transfer of property, which can be done using the UK Land Registry’s TR1 form.
You will need to have your title deeds, marriage certificate (if married) and the necessary identification documents to proceed. You should be aware that the process will involve fees for the Land Registry application and solicitor fees.
For full guidance, see the Land Registry’s information on adding a name to your house deeds.
Can I use equity release to buy out my partner?
You may also be able to use equity release to buy out your partner and remove their name from the deeds. If this is something you want to look into, please see our guide: Equity release and divorce. Our selected equity release advisers will also be able to explain the process to you.
