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Equity release Bradford: are you eligible?

Are you looking for equity release in Bradford? Our selected advisers provide advice for homeowners across the UK, including Bradford and West Yorkshire.

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By Clare Yates • 4th June 2024 • 5 min read

Update on equity release for Bradford homeowners

Written in line with our editorial policy.

Average property values in Bradford are well above the minimum for equity release eligibility. This opens up the availability of this form of lending to thousands of Bradford homeowners aged 55+.

That will be good news if you are looking for a way to unlock tax-free cash from your home – without having to make monthly repayments on a loan. Thousands of people each year are turning to equity release as it provides an alternative route to traditional lending. 

How much you can release is linked to the value of your property, so it’s good news that Bradford property values have shot up in recent decades. For example, the average home in the city is now worth over £48k more than it was ten years ago. 

This rise in property values has no doubt been partly responsible for the growing popularity of equity release in Bradford in recent times. Data from the Equity Release Council reveals that equity release sales rose by 26% in Yorkshire between 2017-2022.

The figures indicate that Bradford homeowners have certainly been making the most of their booming property wealth to boost their day-to-day finances through equity release. 

If you are 55+ and would benefit from a cash boost to achieve your financial goals, you might be wondering if you could be eligible for a plan too. To find out, and to see how you might go about arranging equity release in Bradford, make sure you read this guide. 

We’ll be discussing:

  • What is equity release?
  • How much could I release?
  • Why are house prices important with equity release?
  • What are the main types of equity release in Bradford?
  • Am I eligible for equity release in Bradford?
  • What can you use the money you release for?
  • What are the disadvantages of equity release?
  • How can I arrange equity release in Bradford?
  • Exploring alternatives to equity release

We hope this article will give you a good introduction into arranging equity release in Bradford. Nothing beats specialist advice though, so for further information and guidance, please do get in touch with our friendly selected equity release advisers.

Simply call us on 0800 096 2215 or request a call back and we’ll arrange a no-obligation appointment with an adviser for you. Or click here to find out how much you could unlock from your home with our free online tool.

What is equity release?

For thousands of homeowners across Bradford, equity release has enabled those in need of a cash boost to access their property wealth without having to remortgage or downsize. If you arrange a plan, the money you release could be used to clear your mortgage, loans or credit cards, update your home, book a holiday, help your family financially and much more.

A key benefit to equity release is that you don’t have to make any monthly payments after borrowing on your home. Instead, the interest can be left to roll up until you pass away or move into long-term care. At this point your home is usually put up for sale to repay your loan plus any interest

If you don’t want your loan to grow in size then there are also interest-only payment plans available. In addition, you have the option of making voluntary ad hoc payments each year, typically up to 10% of your overall loan amount, entirely penalty-free.

You can read about the different types of equity release plan available, and some examples of equity release and how it is helping UK homeowners to achieve their financial goals.

How much could I release?

How much you can release depends on several factors, including your property’s value, location and your age. But as a guide, according to the Equity Release Council, the average single lump sum amount released by lifetime mortgage customers was £100,978 in 2023. 

The above is just an average figure of course – customers have released far more and far less than that figure. You can use our free online equity release calculator to find out how much you could unlock from your home.

It is also important to remember that you don’t have to release the full amount that you might be eligible for. You can also access your money in smaller amounts over time if you wish.

You might also find that you can release more money, or achieve a lower interest rate, due to your health or lifestyle. This is because enhanced plans are available to people with poor health or those who have a history of smoking for example. 

Why are house prices important with equity release?

When you request an equity release quotation to see how much tax-free cash you could unlock, the amount will be largely based on the value of your home. Generally, the more your property is worth, the more cash is available to unlock. 

According to the most recent property data, homeowners in Bradford are likely to have much more equity in their properties now than when they bought them thanks to rising house prices. This is particularly the case for those who have owned their own home in the city for 5+ years.

Despite the property market slowing down in recent years, the average home in Bradford has risen by £48,902 in the last decade alone. That’s an impressive 41% growth over ten years.

The table below demonstrates how the average home in Bradford has risen in value since 2014, compared to the rest of the UK.

Bradford house prices vs UK average: 2014 – 2024

YearUK averageBradford average
2014£178,921£118,327
2015£190,827£118,547
2016£205,555£126,176
2017£215,697£130,716
2018£225,131£131,178
2019£227,738£132,726
2020£230,609£135,461
2021£248,669£155,391
2022£269,665£160,499
2023£281,262£173,680
2024£280,660£167,229

SOURCE: Land Registry House Price Statistics in Bradford, Feb 2014 – 2024.

Of course, values differ significantly depending on the type of house you have. Data from Zoopla shows that detached homes in Bradford have sold for an average of £281,897 in the last 12 months, whilst semi-detached homes are going for £171,904. The average terraced house sold for £121,993, whilst flats are achieving an average of £87,702.

It means that if you have little or no mortgage and own a property in Bradford, equity release could potentially help you unlock many thousands of pounds to boost your finances.

Update: property prices in Bradford increase faster than the Yorkshire average

Since we wrote this article, there has been further news about the Bradford property market. The Office of National Statistics (ONS) released an update on 18 September 2024. This reported that Bradford house prices rose by 6.7% for the year July 2023 to July 2024. That compares to a Yorkshire and Humber average increase for the same period of just 3.7%.

What are the main types of equity release in Bradford?

For those considering equity release, Bradford homeowners can choose between a lifetime mortgage or a home reversion plan

Lifetime mortgages

These are the most popular type of equity release plan as there are more options to choose from and you will continue to own 100% of your home. They are typically available to homeowners aged 55+. Some of the choices you have are:

  • Interest-only lifetime mortgage. This allows you to make regular payments to pay off all or some of the interest to prevent or reduce interest from accruing on your loan.
  • Drawdown lifetime mortgage. Instead of taking all of your available cash in one go, you can access an initial lump sum at the start, then ‘draw down’ further funds as and when you need to. This can save you potentially thousands of pounds over the life of your plan.
  • Downsizing protection. Some providers allow you to downsize your home and settle your plan without penalty in the years after your spouse/partner passes away or moves into long-term care.
  • Enhanced lifetime mortgage. If you have a qualifying medical condition or lifestyle factor then you could unlock more money from your home or achieve lower interest rates. 

Home reversion plan

Available to homeowners who are 60+, you may be able to release more money from your home with this type of plan. Although it is much less common than a lifetime mortgage, it is an alternative option for equity release in Bradford that will suit some people.

Instead of borrowing the money and accruing interest, you sell all or a percentage of your home to a reversion company in exchange for a tax-free cash lump sum or regular income. There is no interest to pay, but the home reversion company will pay you well below market value for the share they buy.

You then live in your home rent-free with the same rights as a tenant. When you pass away or move into long-term care then your home is sold and the reversion company can take their percentage.

Am I eligible for equity release in Bradford?

The first step to finding out how much you can release is checking your eligibility. To be considered for equity release, Bradford homeowners must meet these criteria:

  • Your age – 55+ for lifetime mortgages and 60+ for home reversion.
  • Your property’s value – typically at least £70,000 for lifetime mortgages and £100,000 for home reversion.
  • Your property type – some properties are harder to get equity release on, such as houses of non-standard construction.
  • Your property’s location – lenders may be unable to accept properties in certain locations that may adversely affect future saleability.
  • Your outstanding mortgage – you should either have no mortgage outstanding, or an amount that can be paid off with some of the money you release.

Read more in our guide: Are you eligible for equity release?

What can you use the money you release for?

You can use the tax-free cash you release through equity release for just about any legal means. Here are some examples of the reasons that people choose equity release:

  • Pay off your existing mortgage.
  • Clear other debts.
  • Home improvements.
  • Enjoy super holidays.
  • A new car.
  • Make gifts to loved ones.
  • Pay medical or home care bills.
  • Supplement your regular income.

Read more in our guide: What can you use equity release money for?

What are the disadvantages of equity release?

Equity release may be attractive to you due to the potential for tax-free cash with no regular repayments, but there are potential downsides and risks to consider. 

For example, taking out an equity release plan will reduce the value of your estate and the amount of inheritance you can leave to your family. This is because the loan and accrued interest needs to be paid to the equity release provider when you pass away or move into long-term care. This is typically done through the sale of your home, but it can be funded by other money or assets within your estate.

However, there are ways to guarantee that your beneficiaries will still inherit something. These include inheritance protection options and making voluntary interest payments on your plan. When taking out equity release, Bradford homeowners can explore these options if leaving an inheritance is important.  We explain more in our guide to equity release and inheritance.

You should also remember that with a lifetime mortgage, the total loan amount can grow quickly as the interest rolls up on a compound basis. This means that the lender charges interest on the loan amount AND the interest already accrued. Here again, you can reduce the amount of compound interest that builds up by choosing to make regular interest payments

Releasing money might also affect your entitlement to some means-tested state benefits. The money you release is paid into your bank account, so this would be taken into account if you receive or apply for some means-tested benefits. See our guide to equity release and benefits for more information.

Before considering Bradford equity release options, it’s vital that you fully understand all the potential pros and cons of equity release. Our selected equity release advisers are here to help you assess whether equity release is suitable for your circumstances.

Does equity release affect my pension or income tax?

Some people may be concerned that receiving a large cash sum from equity release might impact their pension, or lead to paying more income tax. However, in most cases equity release won’t affect you in either of those areas.

Taking out an equity release plan won’t typically have an impact on income you receive from a State Pension. That’s because the State Pension is not means tested. However, it may affect some means-tested State-funded income in retirement, such as Pension Credit. Likewise, equity release will not typically affect any income you receive from a private pension. See our guide to equity release and pension income for more information.

When it comes to income tax, the money your release from equity release sits outside of your tax threshold. You don’t have to pay income tax on the money you unlock as it’s a loan. Any cash you borrow from a loan is exempt from the taxes that apply to other forms of income. See our guide to equity release and income tax for more information.

How can I arrange equity release in Bradford?

For specialist guidance on equity release, Bradford homeowners can get in touch with our selected advisers by calling our friendly team.

We want you to have all the information you need to make the right decision for you, so all the advice and quotations you receive will be given free of charge. You’ll only pay a fee for advice if you choose to go ahead with a plan, though this can usually be paid from the money you release from your home.

Please call 0800 096 2215, or request a call back for a time that suits you. Alternatively, you can use our free equity release calculator to see how much you could unlock.

Remember, equity release will reduce the value of your estate and the amount of inheritance you leave. Think carefully before securing other debts against your home.

Alternatives to equity release in Bradford

You should always consider alternatives to equity release, and this is something our selected advisers will discuss with you if you choose to have an appointment with them. If there is a better alternative to equity release for you, they will always tell you. 

If you are considering equity release due to cost of living pressures or debt, you may also wish to contact some local Bradford organisations for advice and information. Here are some that may be able to help:

Citizens Advice Bradford and Airedale

Website: https://www.citizensadvice.org.uk/local/bradford-airedale/

Telephone: 08082 787828 (Mon – Fri, 8.30am to 4.30pm)

Email: admin@bradfordcab.com

Location: Argus Chambers, Bradford BD1 1HZ

Bradford Council

The Bradford Council website provides the details of several local and national organisations who can offer advice and support to anyone struggling with debt and financial problems. 

Website: https://bradford.gov.uk/paying-for-services/money-advice/help-with-managing-your-money-and-debt/

Sources:

Bradford house prices £121k more in 10 years: House price data for Bradford. Land Registry. Accessed 13 May 2024.

Equity release sales Yorkshire 26% increase, 2012-2022: Q4 2022 equity release statistics. Equity Release Council. Accessed 9 May 2024.

Average amount of equity released £100,978 in 2023. Q4 and FY 2023 equity release market statistics. Equity Release Council. Accessed 18 April 2024.

Average UK house prices, Feb 2014-2024: UK House Price Index. Land Registry. Accessed 30 April 2024.

Bradford house prices, 2014-2024: Sold house price data for Bradford in 2023. Zoopla. Accessed 13 May 2024.

See also:

London equity release

Liverpool equity release

Manchester equity release

About Clare Yates. With over a decade’s experience writing about later life financial planning, Clare offers a wealth of knowledge about equity release, pension annuities, wills, LPAs and more. When she isn’t writing, Clare likes to spend her time baking and going on walks with her husband, two children and their rescue dog. Follow Clare on LinkedIn

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