Equity release in Surrey – market update

What is the potential for equity release in Surrey?

Written in line with our editorial policy.

Despite current market fluctuations in 2023, average house prices in Surrey have risen by more than £195,000 over the last decade. With record equity release sales seen in 2022, clearly homeowners have been making the most of their surging property wealth.

The cost of properties in Surrey has soared in the last decade, with the average property now worth 79% more than the average UK home. With property prices soaring so quickly, equity release sales in the South East rose by 13% in 2017-2021 according to the Equity Release Council.

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

• What is equity release?
• Average Surrey property value rises by £195k in ten years
• Land Registry analysis of Surrey house prices
• Surrey homeowners could unlock up to £58k MORE compared to 2013
• What are the main types of equity release in Surrey?
• Am I eligible for equity release in Surrey?
• How can I arrange equity release in Surrey?

We hope this article will help you understand everything you want to know about arranging equity release in Surrey. For further information and advice, please don’t hesitate to contact us so we can arrange an appointment with 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 why not check your eligibility and find out how much you could unlock from your home.

What is equity release?

Equity release is a way for older homeowners to raise a tax-free cash boost without having to downsize from the home you love. The money you release can be used to clear your mortgage, loans or credit cards, make home and garden improvements, enjoy more holidays, help family members out financially and much more.

There are no mandatory monthly repayments to make with equity release. Instead, your home is usually put up for sale when you pass away or move into long-term care to repay your loan plus any interest that rolls up. Any money left from the sale is given to your estate to distribute according to your will.

If you want to know if a plan could work for you, call us on 0808 178 3055 or request a call back. Our selected advisers will be happy to give you all the guidance you need.

Average Surrey property value rises by £195k in ten years

Many homeowners in Surrey are likely to have far more equity in their properties today than when they bought them. By tapping into this property wealth using an equity release plan, over-55s can reap the rewards of home ownership without having to move.

Generally speaking, the higher a property is worth, the more cash is typically available to unlock through equity release. So, with that in mind, our analysis of Surrey equity release begins with a more detailed breakdown of property prices in the country 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. 

House price growth has slowed down since then, but the overall increase over the last ten years has been significant. In Surrey alone, homeowners have seen their average house price increase by £195,086 over the last decade – an impressive growth of 61%.

In fact, house values have done so well in the area that the average home in Surrey now costs £228,588 more than the average UK home. That’s 79% more expensive than the average UK home.

See the table below for a breakdown of how the average home in Surrey has increased in value every year since 2013, compared to the average home in the UK:

SOURCE: Land Registry House Price Statistics in Surrey, June 2013–2023.

Surrey homeowners could unlock up to £58k MORE compared to 2013

If you have owned a property in the county for a few years with little or no mortgage then you potentially have a huge amount of equity available to unlock. 

Wondering how much you could release from your home in Surrey? Equity release plans typically allow you to unlock up to 50% of your home’s value, depending on your individual circumstances. The older you are, the more you can typically release.

The table below gives an example of how much tax-free cash a 74-year-old choosing to release 30% of their property would have unlocked. 

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

Thanks to the huge increase to house prices across the county, a typical 74-year-old homeowner in Surrey releasing 30% of their home’s value could potentially unlock up to £20,970 more cash today than five years ago.

The figures look even more impressive if you go further back. The same homeowner could unlock a staggering £58,526 more tax-free cash today from the same house than they could have achieved ten years ago.

How else is your cash release amount calculated?

When assessing how much you can release, equity release providers don’t just look at your home’s value, though it is a significant factor. For instance, the older you are, the higher percentage you can unlock from your home’s value. 

Other factors that equity release lenders consider include your property type, the condition it is in and the location of your home.

Some people can even release more money due to their 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. Qualifying conditions include high blood pressure, diabetes, a history of cancer, strokes or heart attacks, amongst many others.

What are the main types of equity release in Surrey?

For those currently considering equity release, Surrey 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 you can tailor your plan to your individual needs and will still own 100% of your home. Here are just some of the features that you can choose from:

• Interest-only lifetime mortgage: Pay off all or some of the interest each month to prevent or reduce interest from accruing on your loan.
• Drawdown lifetime mortgage: Unlock an initial lump sum now, then access further funds in the future as and when you want to. This can save you potentially thousands of pounds in interest over the life of your plan.
• Downsizing protection: Sell your home and repay your plan in full without any early repayment fees within a set number of years of your spouse/partner passing away or moving into long-term care.
• Enhanced lifetime mortgage: Access more money from your home or achieve lower interest rates if you have a qualifying health condition, or a history of smoking.

Home reversion plans

Homeowners aged 60+ may be able to release a higher amount from their homes with this type of plan. 

A home reversion plan involves selling all or some of your home to a reversion company in exchange for a tax-free cash lump sum or regular income. You then continue to live in your home for life rent-free until you pass away or move into long-term care. 

Am I eligible for equity release in Surrey?

To be considered for equity release, Surrey 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 meet the above criteria then 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.”

How can I arrange equity release in Surrey?

For specialist guidance on equity release, Surrey homeowners can contact our friendly team who will put you through to one of our selected advisers.

From the moment you speak to them, all the advice and quotations you receive will be given free of charge to ensure you have everything you need to make an informed decision. Only if you choose to go ahead with a plan will you receive a fee for advice, which can be paid from the money you unlock.

By understanding all of the pros and cons of a plan, you can make the right choice for you and your family to avoid any equity release horror stories.

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