Blog > Sheffield Equity Release - Market Update

Sheffield Equity Release – Market Update

sheffield

By Clare Yates • 27th October 2023 • 6 min read

Properties in Sheffield worth over £88,000 more than ten years ago

Sheffield house prices have risen by more than £88k in ten years, meaning later life homeowners can access more tax free cash with equity release.

The amount you can access with equity release depends partly on your home’s value. That’s why increases in average property prices typically mean you can release more cash.

The cost of properties in Sheffield has soared in the last decade, with the average home in the city now worth £88k more than 2013. With property prices soaring here and across Yorkshire, equity release sales rose by 26% in the county between 2017-2022 according to the Equity Release Council.

As record equity release sales were seen in 2022, it’s clear that homeowners have been making the most of their surging property wealth. 

If you are curious about how much you could unlock, or how to go about arranging equity release in Sheffield, make sure you read this guide. We’ll be discussing:

  • What is equity release?
  • Average Sheffield property value rises by £88k in ten years
  • Land Registry analysis of Sheffield house prices
  • Sheffield homeowners could unlock up to £26k more than in 2013
  • What are the main types of equity release in Sheffield?
  • Am I eligible for equity release in Sheffield?
  • How can I arrange equity release in Sheffield?

We hope this article will give you a good introduction into arranging equity release in Sheffield. Nothing beats specialist advice though, so for further information and guidance, please do talk to one of our friendly selected equity release advisers.

Simply call us on 0808 178 3055 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?

Equity release is a way for homeowners who are 55+ to access some of their property wealth without having to remortgage or downsize. The money you release can be used to clear your mortgage or other loans, update your home, book a holiday, help your family financially and much more.

A significant 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

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

If you want to know more about your options and how much you could release, call us on 0808 178 3055 or request a call back. Our selected advisers will be happy to give you all the help you need.

Average Sheffield property value rises by £88k in ten years

According to latest data, many homeowners in Sheffield are likely to have far more equity in their properties now than when they bought them. If you own your own home in the city then you may be able to tap into your property wealth using an equity release plan.

Naturally, the more your property is worth, the more cash is generally available for you to unlock. So, with that in mind, our analysis of Sheffield equity release begins with a detailed breakdown of property prices in the city over the last decade.

In 2022 the UK enjoyed record breaking average house prices – no doubt a contributing factor to the record sales seen by the equity release industry last year. However, the market has slowed since. Despite that slower rate of growth, Sheffield homeowners have still seen their average house price increase by £88,626  overall in the last decade. That’s an impressive growth of 69%.

The table below demonstrates how the average home in Sheffield has consistently increased in value since 2013. You can also see how much house prices here compare to the average home in the UK.

Sheffield house prices vs UK average – 2013-2023

YearUK averageSheffield average
2013£174,592£127,997
2014£189,709£135,132
2015£200,142£143,975
2016£215,127£150,125
2017£224,719£154,056
2018£231,187£162,632
2019£232,618£165,483
2020£236,687£167,849
2021£252,960£189,027
2022£288,156£206,802
2023£289,824£216,623

SOURCE: Land Registry House Price Statistics in Sheffield, July 2013–2023.

 

Sheffield homeowners could unlock up to £26k MORE compared to 2013

Curious to know how much you could release from your home in Sheffield? Equity release plans typically allow borrowers to unlock up to 50% of their home’s value: the older you are, the more you can borrow.

If you have owned a property in the city of Sheffield for some years with little or no mortgage, you potentially have a large amount of equity available to unlock. 

The table below shows how much extra tax-free cash a 74-year-old in Sheffield might be able to release compared to ten years ago. This is based on the homeowner choosing to unlock 30% of their property’s value.

Equity release potential for a 74-year-old Sheffield homeowner

YearAverage Sheffield house valueHow much money a 30% equity release equates to
2013£127,997£38,399
2014£135,132£40,540
2015£143,975£43,193
2016£150,125£45,038
2017£154,056£46,217
2018£162,632£48,790
2019£165,483£49,645
2020£167,849£50,355
2021£189,027£56,708
2022£206,802£62,041
2023£216,623£64,987

(The above figures are based on a 74-year-old releasing 30% of the total value of a typical home in Sheffield with a standard lifetime mortgage.)

Thanks to the increase to house prices in this period, a typical 74-year-old living in Sheffield unlocking 30% of their home’s value could potentially unlock £26,588 more tax-free cash from their home than they could have done ten years ago.

How else is your cash release amount calculated?

Your equity release calculation won’t just look at the value of your property, though it is a significant factor. In fact, the older you are, the higher percentage you can unlock from your home’s value. 

However, there are other factors too that equity release lenders will bear in mind. These include your property type, the condition it is in and the location of your home. You may even find that you can release more money due to your health or lifestyle. 

If you have poor health, or a history of smoking for example, then you may be able to unlock a higher amount, or access a more competitive interest rate, with medically enhanced equity release. Qualifying conditions include high blood pressure, diabetes, a history of cancer, strokes or heart attacks, amongst many others.

Am I eligible for equity release in Sheffield?

To be considered for equity release, Sheffield homeowners must:

  • Be 55 or over (both of you if making a joint application).
  • Have a home in the UK worth £70,000 or more.
  • Be mortgage-free or have a small mortgage which can be paid off by the money you release.

If you think you meet the above criteria, you can check your eligibility and see how much you could unlock from your home.

Not yet 55? You may still be able to access some of your equity. Read how in our article: “How to release equity if you are under 55.”

What are the main types of equity release in Sheffield?

For over-55s currently considering equity release, Sheffield homeowners have an initial choice of a lifetime mortgage or a home reversion plan. If you go down the lifetime mortgage route then a few more doors open as to how you can tailor your plan to your needs.

Lifetime mortgages

This is the most popular type of equity release plan. Importantly, with a lifetime mortgage you will continue to own 100% of your home. Here are just some of the features that you can choose from:

  • 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: You don’t have to take all of your available funds in one go. Instead, you can access an initial lump sum now, then ‘draw down’ further funds in the future when you need to. This can save you potentially thousands of pounds over the life of your plan.
  • Downsizing protection: By building this feature into your plan, you can sell your home and settle your plan if 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

If you are a homeowner aged 60+ then you may be able to release more money from your home with this type of plan. 

Instead of borrowing the money and incurring 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. 

From that point you can continue to 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 of the sale price. 

How can I arrange equity release in Sheffield?

For free, specialist guidance on equity release, Sheffield homeowners can get in touch with our selected advisers through our friendly team.

For your peace of mind, all the advice and quotations you receive will be given free of charge. In fact, you only receive a fee for advice if you choose to go ahead with a plan, which can be paid from the money you unlock.

Simply call us on 0808 178 3055 or request a call back for a time that suits you, and we’ll arrange an appointment with one of our selected advisers. 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

How can we help?

To find out more about equity release or arrange a consultation with an adviser, please call or request a call back and we’ll be happy to help further.

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