Yes, you can get a capital release of less than 55 on a purchase-for-rent property. There is no upper age limit for capital release. If you apply as someone who easily exceeds the minimum age requirement, usually 55 years old, you may receive a better offer. Martin Lewis put on record that life mortgages should be left as late as possible.
This is because the later you leave them, the less interest they will incur in them until you die or come into care. If you own a home age 55 or older, you could benefit from releasing a lump sum of tax-free money from the value of your home with the help of a capital release plan. If you are under 55 and want to free up your property capital, you need to explore alternative methods of obtaining financing across the market. If you released the principal on your property under the age of 55, the interest will most likely accrue over decades, making it more unlikely that the lender will recover the full payment with interest after the sale of your home.
These products have a lower interest rate and pay a higher lump sum than traditional equity products. Most lenders offer between 20% and 50% of the market value of your property through the release of equity with a lifetime mortgage and up to 60% on a home reversal plan. Yes, as long as you don't have arrears on your mortgage, you can free up additional capital from your purchase property for rent. But freeing up capital can be a very expensive way to borrow, especially if you live to a mature age.
Subject to certain conditions, yes, you can rent your home even if you have equity release, depending on your specific lender. Lifetime mortgages and other equity release plans are traditional ways to repay the existing mortgage that you can't afford. And if you manage to create a considerable amount of money by reducing staff, you may even be able to delay the use of capital release longer and get a better deal. If Mike wanted to free up some of that extra value, he could re-mortgage an 80% mortgage of £200,000 that would give him £30,000 of money to spend while paying the previous mortgage balance of £170,000.
But if you're tied to freeing up capital for too long, you run the risk of interest charges wiping out the value of your home, and eventually there may be little or no value left. While you qualify for a lifetime mortgage at age 55, the number of available equity release plans will be restricted.