Take our equity release eligibility questionnaire

Are you eligible for a tax-free cash release?

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What are the main criteria for equity release? That’s one of the first questions you might ask when considering this form of later life lending – so we wanted to answer it with a simple equity release eligibility questionnaire.

Your eligibility for a tax-free cash release will depend on a number of criteria, from your age to the property’s value and location. Thankfully however, the core criteria are easy to explain and understand.

So, here’s our simple equity release eligibility questionnaire to help you take the first steps in seeing if you might qualify for a tax-free cash release. There are other criteria and considerations that providers will take into account, but this questionnaire should answer your main questions about eligibility for equity release.

Here are the ten eligibility criteria we’ll explore:

• Question 1 – If you are applying on your own, are you aged 55 or over?
• Question 2 – If you are applying as a couple, is the youngest person aged 55 or over?
• Question 3 – Is your property worth over £70,000?
• Question 4 – Do you have an outstanding mortgage?
• Question 5 – What type of property do you have?
• Question 6 – Is your property freehold or leasehold?
• Question 7 – Is your property in good condition?
• Question 8 – Is your property your main residence?
• Question 9 – Where in the UK do you live?
• Question 10 – Are there better alternatives?

Would you prefer just to talk to someone about your circumstances? Simply call us on 0800 096 2215 or request a call back and we’ll arrange a no-obligation appointment with one of our selected equity release advisers for you. Or click here to find out how much you could unlock from your home with our free online calculator.

Title test

Question 1 – If you are applying on your own, are you aged 55 or over?

YES – You could qualify for equity release.

The standard minimum age for equity release with a lifetime mortgage  (the most popular form of equity release) is 55. That applies across most providers, although some providers do have a higher minimum age limit for some products.

With the less common alternative home reversion, the minimum age is 60.

NO – You don’t qualify for equity release. 

Equity release isn’t available to people under 55.

Question 2 – If you are applying as a couple, is the youngest person aged 55 or over?

YES – You could qualify for equity release.

The minimum age requirement differs slightly for couples taking out equity release. Where you own a property with someone else, the youngest person must meet the provider’s minimum age criteria. So, if the youngest of you and the person you are applying with is 55 or older, you could qualify.

NO – You don’t qualify for equity release.

You won’t be eligible if the youngest person in the couple is under 55. However, a solution might be to remove them from the title deeds of the property, and then apply on a single basis. This option has serious implications however, so you should take legal advice before considering it. Read our guide ‘How to release equity if you are under 55’ for more information.

Question 3 – Is your property worth over £70,000?

YES – You could qualify for equity release.

Properties with a value of £70,000 or more generally fall within the acceptable criteria for equity release. However, there may be higher minimum value (typically £100,000) for other properties with some lenders, such as ex-council properties and ex-MOD properties.

NO – You don’t qualify for equity release.

You won’t typically qualify for equity release if your property is worth less than £70,000. Thankfully however, most UK properties are valued above this threshold.

Question 4 – Do you have an outstanding mortgage?

YES – You could qualify for equity release.

As long as your outstanding mortgage isn’t too high, you could still qualify. That’s because you can typically use some of the money you release to clear your current mortgage. In fact, it’s a condition of equity release that some of it will be used to clear any outstanding mortgage.

However, please do consider all the costs involved, including whether your existing mortgage lender will apply an early repayment charge. Our selected advisers can go through all of this with you to help you make the right decision for your unique circumstances.

NO – You could qualify for equity release.

If you have no outstanding mortgage, you are in an even better position because you can use all the money you release for other things. From paying for holidays and home improvements, to buying a car or helping loved ones, equity release may potentially help meet a number of financial needs.

Question 5 – What type of property do you have?

House, bungalow or flat of standard construction – You could qualify for equity release.

Equity release is typically available on houses, bungalows and flats of standard construction, subject to meeting other criteria such as location and condition.

Other property types – It will depend on individual circumstances.

In the past, people who own certain types of property such as those with a mix of residential and commercial usage, and those of a non-standard construction such as concrete or timber-frame, were unlikely to be accepted. However, some lenders will now consider these properties: call us on 0808 178 3055 to talk to one of our selected advisers for property eligibility check.

Question 6 – Is your property freehold or leasehold?

Freehold – You could qualify for equity release.

Applying for equity release tends to be more straightforward on freehold properties than leasehold, subject to the property meeting other criteria. 

Leasehold – It’s more complicated, but you may still be eligible.

It can sometimes be difficult or impossible to get equity release on a leasehold property, but it’s not always out of the question. Lenders will want to know the length of the remaining lease. If it is within their minimum requirement, they may accept you. 

Even if the time remaining on your lease isn’t long enough, it may be possible to negotiate an extension from the leaseholder. In some cases, you can even use some of the money from equity release to fund the lease extension.

See our guides for more information: Can you do equity release on leasehold flats? and Can you do equity release on leasehold houses?

Question 7 – Is your property in good condition?

YES – You could qualify for equity release.

The condition of your property is important because it affects the saleability and value of the property when it’s eventually sold to repay the loan. This is why providers will want to know that the property is in good, saleable condition.

NO – You may need to do repairs in order to qualify.

Sometimes, a lender will request that you carry out repairs in order to qualify for equity release. But sometimes, they will let you do this after they release the money. This will be on the condition that you use some of the money to complete these repairs.

Question 8 – Is your property your main residence?

YES – You could qualify for equity release.

Most equity release plans are only available on properties that are your main residence. For example, you may need to live there for more than six months of the year for it to be eligible.

NO – You may still qualify for equity release. 

There are exceptions to the rule about properties being your main residence. For example, some providers offer plans that let you take out equity release on second homes and buy-to-let properties.

Question 9 – Where in the UK do you live?

England, Wales or Mainland Scotland – You could qualify for equity release.

Equity release is typically available to customers in England, Wales and mainland Scotland, depending of course on you meeting other criteria. 

The Scottish islands, Northern Ireland and the Channel Islands – You may qualify for equity release, but choice is limited.

Some providers don’t offer equity release to customers in these parts of the UK – but some do. If you need to discuss your eligibility for equity release in these areas, please contact us and we will be happy to arrange for help from our selected advisers.

The Isle of Man – You won’t qualify for equity release.

Unfortunately, equity release is not currently available for properties on the Isle of Man.

Question 10 – Are there better alternatives?

Although this isn’t an issue that affects your eligibility, it is an important consideration. Equity release isn’t right for everyone, and one or more alternatives to equity release may be more suitable – and less expensive in the long run. Also, remember that equity release will reduce the value of your estate and the amount of inheritance you leave. 

If you talk to one of our selected equity release advisers, they will look at alternatives to make sure there isn’t a more suitable way for you to address your financial needs.

Find out if you are eligible for a tax-free cash release

This questionnaire has hopefully helped you to work out whether you might qualify for equity release. For a one-to-one discussion on eligibility, how equity release works and whether it’s right for you, please get in touch.

We will arrange an initial telephone appointment with one of our selected advisers. They will provide advice and quotations at today’s best equity release rates free of charge. You’ll only pay a fee for advice if you choose to go ahead with a plan, though you can typically pay this from the money you release from your home.

To talk to one of our selected advisers, 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.

About Richard Groom. A writer with 20+ years’ experience across several sectors including financial services, Richard has a passion for writing clear and simple content on even the most complex of subjects. In his spare time, Richard loves exploring the hills and mountains of the UK on long walks with his faithful cocker spaniel. Follow Richard on LinkedIn