Equity release with other types of ownerships
In addition to shared ownership schemes, there are other home ownership types that could mean you’re eligible for an equity release plan. Whether you are looking to boost your finances, pay off a loan, or buy somebody out whose name is on your title deeds, equity release may be able to help. In this section we will be covering:
- Equity release on leasehold properties
- Equity release on jointly owned properties
- Shared equity schemes and equity release
- Equity release if more than two people own the property
Equity release on leasehold properties
It may be possible to unlock money from a leasehold property depending on how many years are left on your lease. The figure differs between lenders but generally you need to have a minimum of 90–120 years to be eligible.
When you apply, your lender will carry out some checks regarding your leasehold property. These might include:
- The amount of time you have left on your lease.
- How much ground rent you pay, and if you are liable for any service charges.
- If there are any terms and conditions in your lease that might cause issues.
By asking a few simple questions, our selected equity release advisers will be able to tell you if you could be eligible. Find out today by calling our friendly team on 0800 096 2215 or request a free callback here. They’ll be able to put you through to one of our selected advisers who are specialists in their field.
Can I arrange equity release on a jointly owned property?
You can do equity release on a jointly owned property, providing the youngest applicant is 55 or over. Some people mistake shared ownership for joint ownership. However, joint ownership is simply having a second name on your title deeds, usually your spouse or partner.
If two people are on the title deeds for your property, then you will have to apply jointly for equity release. Remember, this is different to “shared ownership equity release” as you already own your home; you just have two people on your title deeds.
If you want to add your spouse or partner onto your deeds, this can be done during your application for equity release. The benefit of doing this is that both of you will have the right to stay in your home until you pass away or move into long-term care.
You may also be able to use equity release if you jointly own your property but want to buy the other person out and remove their name from the deeds. Some people use equity release as part of their separation or divorce settlement. For example, if one person wants to keep the home but cannot afford to buy their ex-partner out. If this is something you want to look into, then your adviser will be able to explain the process to you.
Can I do equity release if more than two people own the property?
An equity release plan can only be arranged on a property that is owned in single or joint names. If more than two people own your property then you will have to remove the extra name/s from the title deeds with their agreement. Until this happens, you won’t currently be able to arrange an equity release plan on your property.
Did you know? If you need to remove someone from the deeds then it needn’t necessarily hold up the process of unlocking your money. They can be changed during the equity release application process by your chosen equity release solicitor.
Shared equity schemes and equity release
Another scheme available to help prospective buyers get on or move up the property ladder is a shared equity scheme. This is a loan to help you purchase your home, usually to increase the size of the deposit you put down for your mortgage. The shared equity loan is typically between 5-25% of your home’s value but varies between lenders.
The loan is typically repaid through instalments over an agreed number of years, or when you eventually sell your home. Unlike a mortgage, the loan is a percentage of your home’s value, say 20%, rather than a fixed sum such as £20,000. It means the shared equity loan amount will fluctuate – so the amount you pay will depend on the value of the property.
The government’s Help to Buy scheme was one of the more common examples of a shared equity scheme. This scheme stopped taking applications in October 2022.
If you are over-55 with a small amount of your shared equity scheme left to pay off, call us to find out if you are eligible for equity release. By clearing your loan with a plan, you could enjoy a tax-free cash lump sum and a bigger disposable income every month. Call 0800 096 2215 or request a free callback here. now to find out more.