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Equity Release Calculation

Calculate how much you can borrow

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How much can I borrow with equity release?

Equity Release Calculation

The amount you can borrow with equity release is determined by two specific areas: the value of your property and the age of the youngest homeowner.

This is different to a standard residential mortgage where affordability is the main determinant as to the amount of money you can borrow.

Here we consider the factors concerning the Equity Release calculation:

Equity Release Calculation
  • PROPERTY VALUATION: our property value will be assessed by the lenders’ surveyor who will visit your home after your life time mortgage application is submitted. The valuation will be based on the condition of your property and the prices of the most recently sold, comparable properties in your local area. There are websites which provide an indication of the value of your property that can be used as a guide to your property value. Use these with caution as they use an average of house prices so are frequently inaccurate.
  • AGE: The age of the homeowner(s) is the second factor that influences the amount that you can borrow. Lifetime mortgages are available to homeowners over the age of 55. The older you are (with each additional birthday over 55) the higher percentage of the value of your property you can borrow.
  • A single 55-year-old would be able to borrow a maximum 28% of their property value, a 65-year-old 41% and a 75-year-old 51%. For a property value of £400,000, this would mean up to £112,000 for the single 55-year-old, up to £164,000 for a 65-year-old and up to £204,000 for a single 75-year-old.
  • This amount may be increased if the applicant (or youngest in the case of a joint application) has a significant health impairment. In these circumstances, the lender may agree to offer a higher loan amount. *This information is all correct as at July 2021 and up to date and personalised quotes should always be requested.

Check out our Equity Release Set Up Costs page which looks at the four main costs associated with taking out an equity release mortgage.

Call The Equity Release Lady on 01752 749656 or CONTACT US to discover whether equity release mortgages are the right option for you.

We are authorised and regulated by the Financial Conduct Authority so you can always trust us to give you honest and impartial advice.

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The Equity Release Lady (Company number 13354566) is a Trading Name of Ocean Mortgages Ltd. Ocean Mortgages Ltd is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register under reference 841683. Only if you choose to proceed and your case completes will Ocean Mortgages Ltd charge a fee. Our adviser will talk you through this and the setting up costs before you make any decision to proceed. A lifetime mortgage may affect the value of your estate and your entitlement to means-tested state benefits.

A summary of our internal procedures for the reasonable and prompt handling of complaints is available on request and if you cannot settle your complaint with us, you may be entitled to refer it to the Financial Ombudsman Service at financial-ombudsman.org.uk or by contacting them on 0800 0234 567.

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