You might be thinking about taking equity out of your home. Using an equity release mortgage, it’s possible to free up the cash you might need. You can use this cash however you want to complete repairs on your home or perhaps gift money to your family. It is also possible to take your equity out as a lump sum or perhaps as multiple payments over a period. This can be flexible to match your requirements and individual needs.
Be aware that typically providers will not usually allow for the release of equity on a home that is valued at anything less than £70,000. If your home matches this value or exceeds it then you may be wondering how much you can borrow.
How Do You Calculate The Equity?
The amount that you can borrow by taking equity out of your home will differ depending on the provider that you choose. Typically, a provider will send out a surveyor. They will complete a professional valuation of your property and this will determine how much could be released.
The amount released is also dependant on the age of you as well as your partner if you are planning a joint application. The value of the property will also impact how much you can take out.
Be aware that enhanced larger sums could be available from certain providers for individuals with certain medical conditions. This could include lifestyle factors such as a past or current smoking habit, heart problems, cancer or a stroke.
Can You Still Release Equity With A Mortgage That Hasn’t Been Paid Off?
There are equity release calculators online that should provide an average idea of how much you could take out. These will usually require the estimated value of your home and your age. Be aware that most providers have their own calculators so what they actually provide an amount based on what they would offer you. A calculator like this will also typically explore the location of the property to gain a better perspective of the market value.
You might be interested in finding out how much equity you can take out even if you have a current outstanding mortgage. Be aware that a mortgage must be paid off in full. However, you can do this with some of the money from the equity or potentially from other funds. After you have completed this process, You will be free to spend the rest of the money how you want. As such, when you are calculating your equity you must subtract the amount left on your mortgage.
Why Is Age Important?
You do need to be at least 55 to take out a lifetime mortgage. If you are planning this with a partner then the youngest partner must be at least 55 as well. If you are opting for a home reversion plan, then you need to be at least 65 years old.
Can You Withdraw More?
Some providers will allow you to withdraw more money at a later date after you complete your original home equity release. You will be able to keep doing this if you meet the max available from your provider.