Am I eligible for equity release?

Who can consider equity release
and why eligibility matters

Not everyone qualifies for equity release. Before you start exploring lifetime mortgages or home reversion plans, you need to check whether you meet certain personal and property-based criteria. These eligibility rules protect both you and the lender, but they also make sure the plan is appropriate for your circumstances.

Core eligibility requirements:
Age, ownership and property value

• Minimum age requirement (usually 55 for lifetime mortgages)
• You must own your home outright or be able to repay any existing mortgage
• The property must meet a minimum value threshold (often around £70,000)

Why age, ownership and value are fundamental

Most equity release plans require the youngest homeowner to be at least 55 to qualify.

Equity Release Council (ERC) describes equity release as allowing “individuals aged 55 and over to release money from the property they live in” through lifetime mortgages or home reversion plans.

If you have an outstanding mortgage, you are usually not automatically disqualified - but the released funds must first pay off that mortgage before you access any cash.

Finally, lenders generally insist on a minimum property value, often around £70,000. This threshold ensures there is sufficient value to support the loan and future repayment when the property is sold.

Property type and condition:
What kinds of homes qualify

• Most standard-construction houses, flats and bungalows qualify
• Leasehold properties may be accepted if the lease is long enough and meets lender requirements
• Unusual construction types, poor condition or short leases may reduce eligibility or require extra checks

Why the type and state of your home matters

Lenders want to be sure that the home could realistically be sold in the future - because equity release is typically repaid when the homeowner dies or moves into long-term care. That means your property must be structurally sound, habitable, and constructed in a way lenders recognise as “standard.”

If your property is leasehold, there may be extra requirements: many lenders want a long remaining lease term before accepting it as security.

In practice, most conventional houses, bungalows, and flats built of brick or stone with pitched roofs are accepted. Non-standard construction or properties needing major repair may face more scrutiny or be excluded.

Other practical eligibility checks lenders may make

• The plan allows up to two applicants - both must meet age criteria
• Your property must be your main residence (not a buy-to-let or second home)
• Any outstanding mortgage or secured debt must be cleared as part of the equity release
• Lenders look at the property’s location and likely future saleability

Why these additional checks exist

Where two people own the home, for example spouses or partners, equity release providers generally use the age of the youngest homeowner to assess eligibility.

Equity release is intended for owner-occupiers, not buy-to-let landlords or holiday homes. Using a property not as your main residence increases risk for the lender, which makes approval less likely.

Any existing mortgage or secured debt tied to the property must either be paid off using the cash from equity release or cleared by other means before releasing funds. This ensures the lender has clear title to secure the loan.

Finally, location and future saleability matter. Lenders may be reluctant if the property is in a less desirable area or has features that make resale uncertain.

Types of equity release
and how they affect eligibility rules

• Lifetime mortgages - most common form; eligibility starts at age 55
• Home reversion plans - sometimes require a higher minimum age (e.g. 60 or 65) and have stricter rules

Why the type of plan can change eligibility

The most commonly used form of equity release is a lifetime mortgage. This requires you (or the youngest homeowner) to be at least 55.

Home reversion plans tend to have slightly stricter criteria. Some providers set the minimum age for home reversion at 60 or 65.

Given the difference in eligibility requirements and how the products work, it’s important to check carefully which type of equity release you are applying for.

Why not meeting eligibility does not always mean ‘never’ - but expect barriers

• Older applicants or very valuable properties may need additional underwriting
• Non-standard homes might be considered on a case-by-case basis
• Outstanding debts, leasehold issues or non-UK locations will complicate or prevent approval

Some flexibility, but extra caution needed

Even if your home is above average value or you are older, some equity release providers may apply extra checks or underwriting, especially for very expensive properties.

Non-standard homes, for example timber-framed, flat-roofed, or with unusual features, may sometimes qualify, but it depends heavily on the lender’s criteria and the results of a property survey.

If you live outside the main UK jurisdictions (England, Scotland, Wales) or the property doesn’t meet residency or condition requirements, you may find equity release much harder or impossible to secure.

What to do next:
How to check if you qualify

• Use a regulated, authorised adviser - ideally a member of the Equity Release Council
• Prepare property documents and valuations in advance
• Be ready to settle any outstanding mortgage or secured debts
• Check leasehold terms for flats or non-freehold properties
• Get a realistic estate valuation and consider alternative options

Getting started with an informed application

First, check that any adviser or provider you speak to is authorised by the Financial Conduct Authority (FCA) and ideally a member of the Equity Release Council. ERC membership helps ensure lenders and advisers follow good practice.

Gather your property details; title deeds, value estimates, existing mortgage statements, and be prepared to clear any outstanding mortgage as part of the equity release. If your property is leasehold or has a non-standard structure, check the lease length and get a surveyor’s opinion on its condition.

Finally, consider alternative options (downsizing, other finance, pension drawdown) if you don’t meet eligibility or if your property is borderline. A good adviser can help you explore all possible routes.

Conclusion

Equity release can provide homeowners aged 55 or over with access to cash tied up in their home, but not everyone qualifies. Age, property value, condition, ownership type and location all play a part in determining eligibility.

If you meet the core criteria, and your property is in good order, equity release may be a viable option. If you fall short in one or more areas, you may face restrictions or need to consider other financial options.

Getting professional, regulated advice and fully understanding the criteria will help you decide confidently whether equity release is right for you.