Equity release plans are available to homeowners aged 55 and over and there is no upper age limit. Not all providers lend to all ages, but most plans are available to applicants ages 60 to 85. For joint applications, providers will consider both ages; you can make a one-time application if one of the applicants is too young.
Capital releaserefers to a range of products that allow you to access capital (cash) immobilized in your home if it is older. You can accept the money you release as a lump sum or, in several smaller amounts, or as a combination of both.
Providers vary, but to be eligible for a lifetime mortgage, the minimum age is usually 55. If you have an existing mortgage or other debt secured against your property, you must pay it with the equity release itself or before proceeding with the application. Equity release is only available to people 55 years of age or older. If you're close to 55, you might feel like you're in a position where you can wait until then. However, if you are a homeowner under the age of 55 and have a more pressing need, it's worth talking to a mortgage broker about re-mortgaging or contacting a financial advisor if your situation is particularly complicated.
A capital release mortgage involves a lender giving you cash in exchange for a portion of the proceeds from the sale of your property later on. But unlike a traditional mortgage, which you pay within a certain period of time, a capital release loan is not settled until you leave your home. Releasing capital can provide you with a large sum of money to spend and at the same time allow you to continue living in your home. It can be particularly useful to cover large expenses later in life, such as long-term care.
However, there are downsides to accessing the value of your home in this way. The capital release, the process of redeeming part of the value of your home, is usually only available to people 55 and older. However, there may be other options to borrow money against the value of your home, without using total capital release products. In addition, if you are under 55 but your partner is not, there may also be a way to access the capital release.
The type of capital release we offer is called a lifetime mortgage. You can receive a lump sum or lump sum payment, with a cash reserve to withdraw in the future.