Blog > Can you do equity release on ex-MOD properties?

Can you do equity release on ex-MOD properties?

equity release on ex council house uk

By Clare Yates • 8th August 2023 • 6 min read

Explore if your ex-MOD property qualifies for equity release

Providing your ex-MOD property is over a certain value, it may be eligible for an equity release plan. 

Different providers have different criteria though, so read on to see what some of them have to say about this type of home. In this guide to equity release on ex-MOD properties, we’ll cover the following:

  • How does equity release work?
  • What is an ex-MOD property?
  • Can you get equity release on ex-MOD properties?
  • What some equity release providers say about ex-MOD properties
  • Are there other ways to release equity on ex-MOD properties?
  • Getting advice on ex-MOD equity release.

To speak to one of our selected advisers about unlocking the tax-free money from your ex-MOD property, call 0808 178 3055, or request a call back and we’ll arrange an appointment.

How does equity release work?

Before we get into the eligibility of equity release on ex-MOD properties, it’s worth understanding how a plan works. Equity release is a financial product for homeowners aged 55+ who want to unlock some of their property wealth.

The most popular form of equity release is a lifetime mortgage and is available as a lump sum or drawdown plan. After releasing a percentage of your home’s value, you’ll still retain full ownership of it. The loan plus interest is typically paid back through the sale of your home when you pass away or move into permanent long-term care, so there are typically no monthly repayments to make.

Alternatively you can arrange a home reversion plan, which involves selling all or a portion of your property to a provider in exchange for a lump sum payment or a regular income. You stay in your home as a tenant with no rent to pay until you pass away or move into long-term care. There are no mandatory repayments to make on a home reversion plan.

See our blog featuring examples of equity release for further information and case studies on how equity release can help with later life finance.

Want to know how much you could unlock from your home? Check your eligibility and get your free quote now.

What is an ex-MOD property?

The Ministry of Defence (MOD) owns and leases accommodation for service families. In 1996, private company Annington bought more than 55,000 of the MOD’s service family homes across England and Wales. While most of these are leased back to the MOD, a significant number deemed surplus to requirements have been refurbished and put up for sale on the private market.

The homes, which are mostly terraced, semi-detached and detached houses, are usually refurbished and then sold at highly competitive prices. It has given many first-time buyers, key workers and downsizing older homeowners access to affordable housing.

Most recently, a batch of ex-MOD homes in Wiltshire went on the market after being deemed surplus to requirements. As an example, prices for their three-bedroom semi-detached homes off Pans Lane in Devizes will start at just £225,000.

Can you get equity release on ex-MOD properties?

Yes, you can often arrange equity release on an ex-MOD property, but your home will need to meet the lender’s criteria to be eligible. This typically centres around a minimum house value, which tends to be higher than what they require from a standard property. 

As an example, the minimum house value for a standard home doing equity release is £70,000, whereas ex-MOD homes often need to be over £100,000. This minimum value may be higher or lower depending on which provider and plan you select.

What some equity release providers say about ex-MOD properties

There are different equity release providers, each with their own criteria and requirements. You may find that one lender will consider your ex-MOD property whilst another does not. 

The great news is that our selected advisers can take your details over the phone and run a search to find the right provider and plan for your individual needs.

Here are some of the equity release providers who mention ex-MOD properties in their plan features:

  • Just. Accepts ex-M.O.D. houses valued at £100,000 or more in a good state of repair.
  • Pure Retirement. Their Heritage range accepts ex-MOD properties valued at £100,000. Their Classic Plan accepts ex-MOD houses and bungalows of traditional construction in areas of predominately private ownership with a minimum value of £150,000.
  • Legal & General. Accepts ex-MOD properties valued at £100,000.

Of course, other providers may well arrange equity release on ex-MOD properties and may have a lower minimum value for your home to be accepted. This is merely a comparison of some providers that mention ex-MOD homes in their criteria. Our selected advisers can run a search across leading providers on your behalf. 

Getting advice on ex-MOD equity release

If you are thinking about doing equity release on an ex-MOD property then do make sure you speak to our friendly team. 

Our selected advisers are specialists in equity release. They can discuss your individual circumstances and offer as much help as you need to find the very best plan for your needs. As part of the service, they will explain all the benefits and pitfalls of equity release too, so you can make a fully informed decision.

Simply call us on 0808 178 3055 or request a call back and we’ll put you in touch with someone who can help. Alternatively, check your eligibility and get an initial indication of how much tax-free cash you could unlock.

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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