If you’re not sure whether your home will qualify for equity release, this is the article for you. We look at different types of property and their chances of being eligible.
When providers assess you for an equity release plan, they will look at the value, location, condition and type of your property. Homes that are often accepted include:
Important: To qualify for equity release you need to be 55 or over with a home worth at least £70,000. Equity release will reduce the value of your estate. You will have less capital to leave in your will.
Yes, you can get equity release for most standard construction houses and bungalows that are leasehold. A standard construction house tends to be brick or stone with a slate or tile roof.
In the UK, leasehold is more common with flats than houses. But for some older homes you may have a leasehold where you’re liable for annual costs. These can include ground rent and service charges. You’ll need to know how many years are left on your lease, as some providers have a minimum amount. They might ask you to buy the freehold as part of an equity release plan.
You can get equity release on some flats. It depends on the ownership, location and value.
Many flats in the UK are leasehold, which means you don’t own the land the property is built on. This means you can buy and sell your home, but not the land. Equity release is affected by the length of lease you have left. Many providers only ask that you have 75 years left on the lease. But some may ask for 90, 100, 120 years or even more.
You will need the leasehold to shared areas such as hallways, stairs, gardens and the roof. Without this (or being able to arrange it) maintenance is difficult, and it might be harder to get equity release.
Ex-council flats will need to be outside the council’s discount period. Some providers may want a careful look at the building materials used. And some may set higher value limits.
Equity release may be possible, but lease conditions on retirement flats can be restrictive. They often include extra charges or clauses that dictate how a property can be sold. This can make them less appealing to equity release providers.
A non-standard construction features materials other than brick, stone, slate and tiles. This includes homes with:
Non-standard homes may be less attractive to equity release providers. This is because their value can be less stable, and they can cost more to maintain.
No, as park homes are seen as mobile homes. While you own the structure of the home, you don’t own the ground it sits on. Providers see a park home as a depreciating asset, which won’t provide future security.
You can’t get equity release unless you own your home 100%. If you’re in a shared ownership scheme, your home won’t qualify for equity release. The exception is if you buy the remainder of the property and take sole ownership.
With any jointly owned property, you can’t get equity release just on your share. So, you’ll need to apply jointly or remove an owner from the deeds and apply solo.
Commercial properties could be hotels, B&Bs or buy‑to‑lets. If you use your home like this (partly or fully), equity release won’t be likely. Most providers need the property to be your main residence. However, some providers will consider a second home.
Every home is unique. We’ve listed lots of types in this article. But there are other scenarios for studio and basement flats, houseboats, and farms. To check if you’re eligible for equity release, you can use our online checker. And if you want to chat to a team of experts, our contact details are below.
Saga Equity Release is an advice service provided by HUB Financial Solutions Limited. As well as clear and trusted guidance, we offer a flexible equity release product called the Saga Lifetime Mortgage (provided by Just). To be eligible, you must be aged 55 or over and own a UK property worth at least £70,000.
A lifetime mortgage is a loan secured against your home. It will reduce the value of your estate and may affect your access to state benefits.
Chat to an expert and find out if equity release is right for you. Or request a callback at a time that suits you.
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You could release tax-free money to pay for work on your property.
From set-up fees to interest rates, we look at the cost of equity release.
