Are you looking to unlock the value of your home and access tax-free cash? Equity release mortgages are a great way to do just that, but there are certain requirements you must meet in order to be eligible. One of the most important requirements is age – but what is the minimum age requirement for an equity release mortgage?In order to apply for a lifetime mortgage or home reversal plan, you must be at least 55 years old. This is the minimum age requirement for equity release mortgages, and not all providers offer loans to people of all ages. Most plans are available to applicants between 60 and 85 years old, so if you are younger than 55, you will not be able to obtain a capital release plan yet. If you have an existing mortgage or other secured debt against your property, you must liquidate it through the equity release itself or before continuing with the application.
The amount you can release is based on your age and the value of your home. Depending on the capital release product you choose, you can claim your money as a large lump sum or as a series of smaller lump sums. If you own a joint property, both landlords must meet the minimum age requirement of 55. However, some lenders will consider it if one partner is under 55, as long as they are excluded from the property deeds. Equity release can be used as a way to help finance general living expenses during retirement or to pay for large purchases, such as home renovations or cruise ships around the world. Advisors can have two specialized accreditations that demonstrate their knowledge and experience in treating capital release and other problems later in life. If you're looking for capital release for people under 55, there are several options available and you can still free up the capital of your home while maintaining the value of your home and saving money for your children's inheritance at the same time. Your advisor will verify your eligibility and take the time necessary to determine if capital release is right for you. The difference between capital release products and a secured home equity loan is that the capital release doesn't require the homeowner to make any monthly repayments.
However, because the closer you are to borrowing as much money as you can, the higher the capital release interest rate. An alternative to a capital release mortgage would be to consider selling your current property and downsizing it to a smaller one. If your parents own their own home, then Equity Release can be a way to raise capital without having to move out of home. This page has a free-to-use Equity Release calculator that does not require the entry of personal data. Therefore, if you are under 55 and want to contract a capital release plan, you could live another 20, 30, 40 years or more and, by then, you would have paid a lot of interest to the capital release provider and this could exceed the value of your home. If you don't follow independent financial advice and end up choosing an inadequate capital release plan, there will be less reason to file a complaint if you're not satisfied. The CEO of Laterlivingnow and specialist in capital issuances, Simon Chalk, explains what we should consider when choosing an equity release advisor.
There are two ways to free up capital in the UK – either through a lifetime mortgage or a home reversal plan.
