0333 322 5544

Equity Release Calculator

An equity release scheme allows you to tap into the value tied up in your home without the need to move. If you have ever considered the potential benefits of equity release, we strongly recommend using our exclusive equity release calculator for a no-obligation estimate.

See our privacy policy for more details.

What is an Equity Release Calculator?

Our innovative equity release calculator is a simple yet insightful online tool, which provides instant and obligation-free estimates for prospective equity release customers. Simply enter a few details to find out how much equity you could release, in accordance with the type of policy you choose.

If you are not sure exactly how much your property is worth, you can enter an approximate amount and get a rough figure of how much equity could be released.

What is Equity Release?

Equity release is a popular option among homeowners aged 55 and over, who are asset rich but cash poor and are looking to release equity tied up in their home. The basic mechanics of an equity release scheme are relatively simple:
  1. A Loan is raised against the value of your home.
  2. The maximum loan achievable is usually calculated by age, gender, and property value. The older the client, the more can be raised.
  3. The approval of the loan is not based on income, credit etc.
  4. The equity release company puts a charge on the security property in the same way as a regular mortgage company would. This is charge is removed following payment of the Equity Release loan.
  5. The length of the loan (term) is agreed at a fixed interest rate. If still living in the property at the end of the agreed term, you can never be asked to leave.
  6. Monthly payments are rarely required. The monthly interest generated throughout the term of the loan is instead added to the initial loan advance and repaid when the property is sold. This is usually following an agreed period after death or movement into long term care or after a regular sale.
  7. The loan amount including interest will never exceed the value of the property.
  8. The agreed loan is a tax-free payment.
  9. You continue living in your home until you die, go into long term care, or decide to sell.
  10. Following the repayment of an Equity Release mortgage, any additional funds will remain with the client or go to the client’s estate.
  11. Equity Release mortgages can also be used to purchase property.
Increasingly, retirees and elderly individuals across the UK have limited finances, while owning a valuable property. It is not uncommon for an individual with a minimal pension and no additional savings to have hundreds of thousands of pounds in equity tied up in their own homes. Equity Release can tap into this equity in the form of a tax-free payment, while the borrower remains living in the property.

Why Use an Equity Release Calculator?

Equity release can be a tempting prospect for homeowners looking to capitalise on the equity tied up in their properties. It is nonetheless important to establish ahead of time how much you are likely to receive if you go ahead.

There are two types of equity release available: Lifetime Mortgages (including lump sum, interest serviced and drawdown) and Home Reversion Plans. UK Property Finance offers a second to none advice service for clients looking to release equity.

Key Considerations with Equity Release

A competitive equity release scheme can provide quick and relatively easy access to the cash tied up in your home, however, not all situations are open for Equity Release. Lenders impose their own restrictions and qualification criteria, which may include property type, current market value, condition, the applicant’s state of health and so on. Age restrictions also play a role and most providers impose a minimum age requirement on the youngest applicant of 55 or 60 years. Our exclusive online equity release calculator has been designed to provide a basic overview of the options available for qualifying homeowners. Simply by entering your age, the approximate value of your property and outstanding mortgage balance, you will be provided with an estimate of how much of your home’s value could be released. Alternatively, call anytime for an obligation-free consultation to discuss the available options in more detail.

Age of the Applicant in Relation to Equity

With all equity release providers, the maximum loan is determined by age at the time of the application. The older the person is, the more likely they are to qualify for a larger sum of money. For example, a typical equity release scheme may enable a 55-year-old applicant to access 22% of the total value of their property. In the case of a similar applicant who is 85 years of age, they may have the opportunity to access a much larger percentage of the property’s value. This is because equity release is tied to life expectancy and the amount of time the applicant is likely to continue living in the property. If you would like to learn more about equity release or how much of your home’s value you could access, call anytime for an obligation-free consultation.

Outstanding Mortgage Balance

It is important to note that Equity Release is only offered against the proportion of your property that you own. Any Equity Release mortgage is raised on a first charge basis i.e. the Equity Release loan raised needs to be enough to repay any mortgages or other loans secured on the property. The greater the proportion of your property you own, the more funds you will be able to access with Equity Release.

Independent Expert Advice

Equity release can be exceptionally useful and beneficial for the right candidates, though it is not for everyone, therefore, it is essential to first seek independent expert advice, before deciding whether equity release is for you.

What is a Lifetime Mortgage?

Lifetime mortgages enable property owners to access the equity tied up in their homes by way of either a lump-sum payment or a regular monthly income stream or a mix of the two.

Lifetime mortgages can also be used to purchase properties in the same way as a normal mortgage. 

Unlike a typical mortgage, no monthly repayments are necessary and although monthly payments can be made, the loan and all applicable borrowing costs are instead normally repaid when the property is sold after the owner moves out or dies.

What is a Home Reversion Plan?

A home reversion plan involves selling part or the whole of your property in return for a lump sum. While you will no longer own any or a part of your home you will be able to remain living there for the rest of your life rent free. The amount you are offered will generally be below market value.

Why Should I Enquire with UK Property Finance?

  • Results displayed instantaneously
  • No credit checks carried out
  • Independent expert advice
  • An easy way to explore the available options
  • No-obligation to go ahead

Working with an extensive panel of independent lenders across the UK we offer access to an exclusive range of equity release products you will not find on the High Street.

Who Can Qualify for Equity Release?

Eligibility for an equity release scheme is typically based on the property’s value and the age of the applicant. You are almost guaranteed to qualify for equity release if you meet the following basic criteria:

  • You are the legal owner of your property
  • You are aged 55 or over
  • You are a permanent UK resident
  • The property you own is in the UK
  • Your property has a minimum value of £70,000
  • Your mortgage is fully or mostly paid off
  • You intend to release more than £10,000

Additional terms and conditions apply, which may vary significantly from one lender to the next. By carrying out a whole-of-market search on your behalf, we will find the ideal equity release scheme to suit your priorities and your budget.

*Please note that certain property types do not quality for equity release.

Independent Expert Advice

It is important to acknowledge the fact that equity release is not suitable for everyone and can have an impact on the overall value of your estate. Equity release is not without its risks and presents a variety of potential disadvantages that must be carefully considered.

Use our online equity release calculator to explore the available options, before contacting the team at UK Property Finance for more information. If you choose to go ahead, we will compare competitive deals from specialist lenders across the UK to find your perfect equity release scheme.

What Other Online Calculators are Available?

UK Property Finance offers a range of simple yet insightful online calculators, including the following popular tools:

  • Mortgage Calculator.  If you plan on purchasing the property, our online mortgage calculator will help you work out how much you can afford to borrow and the monthly repayments to expect, should you go ahead.
  • Remortgage Calculator.  Whether you are looking to raise additional funds for any purpose or simply switch to a more competitive mortgage, our exclusive remortgage calculator makes it quick and easy to explore the available options. 
Last Updated: Jul 30, 2021 @ 10:17 am
NACFB
UK Property Finance is Authorised by The Financial Conduct Authority (FCA)
Association of Bridging Professionals