How Much Equity Can You Release? The Factors That Decide It

Last checked: 31 October 2026

How much equity a UK homeowner aged 55 or over can release with a lifetime mortgage depends on a handful of factors. The main ones are the age of the youngest borrower, the value of the home, health and lifestyle, the type and condition of the property, and whether a mortgage is still owed on it. Each lender weighs these in its own way, so the amount offered is set case by case. This guide explains each factor in plain words. For the basics of how a lifetime mortgage works, see how equity release works.

Why there is a limit at all

A lifetime mortgage is a loan secured on the home, with no monthly payments required. Interest is added to the loan instead of being paid each month, and the total is normally repaid from the sale of the home when the last borrower dies or moves into long-term care.

Because the loan and the interest added to it are only repaid at the end, the lender has to be confident that the sale of the home will cover what is owed. Lifetime mortgages from members of the Equity Release Council also include a "no negative equity" feature: the borrower, or their estate, will never owe more than the value of the home when it is sold, after reasonable sale costs, as long as the terms of the loan have been kept (Equity Release Council product standards). This is why lenders only release a share of the home's value, and why that share depends on how long the loan is likely to run.

Factor 1: age of the youngest borrower

Age is usually the biggest single factor. Lifetime mortgages are only for people aged 55 and over, and older borrowers can usually release a larger share of their home's value than younger ones.

The reason is how long the loan is expected to last. A younger borrower is likely to keep the loan for longer, so more interest has time to build up. Lenders allow for this by releasing a smaller share at the start.

For couples taking a lifetime mortgage in joint names, the lender bases the amount on the younger of the two. The loan continues until the second person dies or moves into long-term care, so the younger borrower's age decides how long it is likely to run.

Factor 2: the value of the property

The amount released is a share of the home's value, so a higher value means a larger amount for the same share. Lenders arrange their own valuation of the home rather than relying on an estimate from the owner or a property website.

Where the home is can also matter. Lenders look at how easy the property would be to sell in its local market, which can affect both the valuation and whether the lender will lend on it at all.

Most lenders also have a minimum property value and a minimum amount they will lend. A home below a lender's minimum may not qualify with that lender.

Factor 3: health and lifestyle

Some lifetime mortgages take the borrower's health and lifestyle into account. These are often called enhanced lifetime mortgages. Medical conditions, and lifestyle details such as smoking, can increase the amount available with this type of plan.

The reasoning is again about how long the loan is likely to run. Where health or lifestyle suggests a shorter expected term, a lender offering an enhanced lifetime mortgage may release a larger share of the home's value.

To assess this, the lender asks questions about medical history, any medication taken, and lifestyle. Not every lifetime mortgage looks at health. Where one does not, the amount is based mainly on age and property.

Factor 4: the type and condition of the property

Lenders set criteria for the kinds of property they will lend on. A standard house or flat built from brick and in good repair usually meets most lenders' criteria. Some properties are harder to lend on, for example:

• Unusual construction: homes built with non-standard materials or methods.
• Flats: some lenders look at the number of floors in the building, the length of the lease and any service charges.
• Leasehold homes: a lender may require a minimum length left on the lease.
• Listed buildings or homes with agricultural ties: these can limit who may buy the property later.
• Condition: a property in poor repair may be valued lower, or the lender may ask for work to be done.

Where a lender does lend on a less common type of property, the share it releases may be smaller. Park homes, static homes, mobile homes and caravans are not covered by the lifetime mortgages on this site.

Factor 5: any existing mortgage

A lifetime mortgage must be the only loan secured on the home. If a mortgage is still owed, it is normally paid off from the money released.

This means the amount left to spend is the amount released minus the mortgage that is cleared. A homeowner with a large mortgage still owed may find that little or nothing is left after it is repaid, or that the amount available is not enough to clear it. Any other loans secured on the home, such as a secured loan, are treated the same way.

Choices that reduce the amount at the start

Some features of a lifetime mortgage lower the amount available at the start, in return for other benefits:

• Protecting part of the home's value: some plans let the borrower set aside a share of the home's value for family. That share cannot be borrowed against, so less can be released.
• Taking less than the maximum: borrowers do not have to take the full amount offered. Taking less means less interest builds up.
• Drawdown: with a drawdown lifetime mortgage, a smaller first amount is taken and further amounts can be drawn later when needed. Interest is only charged on money actually taken.

Costs that come out of the amount

The amount released is not always the amount that reaches the borrower's bank account. Fees can include a valuation fee, a lender arrangement fee, solicitor's fees and a broker fee. Some of these can be added to the loan, which means interest is charged on them too. All customers taking out equity release through a member of the Equity Release Council must use their own independent solicitor (Equity Release Council).

Other things to weigh up

The amount that can be released is only one part of the picture. A lifetime mortgage reduces the value of the estate left behind, because the loan and all the interest added to it are repaid first when the home is sold. Money released can also affect means-tested benefits such as Pension Credit, as gov.uk explains for savings over a set limit (gov.uk: Pension Credit eligibility). Free, impartial information is available from MoneyHelper.

How the actual amount is found

No figure is shown on this site. After an enquiry is sent, the visitor receives a phone call and an email from an equity release broker. The broker asks about age, the home, health and lifestyle and any mortgage still owed, and the broker will advise on how much could be released for the visitor's individual circumstances, along with the costs involved.

Key points

• Lifetime mortgages are only for UK homeowners aged 55 and over.
• Older borrowers can usually release a larger share of their home's value.
• For couples, the age of the younger borrower is used.
• The lender's own valuation, the property type and its condition all affect the amount.
• Enhanced lifetime mortgages take health and lifestyle into account, which can increase the amount.
• Any existing mortgage is normally paid off from the money released.
• Protecting part of the home's value or using drawdown means less is taken at the start.