Generally speaking, you can’t access your home’s equity via a lifetime can you equity release at 50 or home reversion scheme until you are over 55 years old. This is because the lender will need to recuperate the full payment plus interest when you sell your property at a later date. This is why it’s important to seek independent financial advice before proceeding with any type of equity release plan. It’s also important to consider other options such as downsizing, renting out a room and saving smarter.
Can You Equity Release at 50?
As a rule of thumb, most lenders will only lend between 20% and 50% of your property’s value with a lifetime mortgage or 60% with a home reversion scheme. However, there are some lenders that may offer more with a transfer of equity option (gifting a percentage of your stake to your family members).
The main factor is your age and the type of property you own. Some lenders will only consider freehold houses or flats, while others have more flexible criteria that can include annex, annexes, bungalows and other non-standard construction types.
It’s also worth noting that releasing equity will reduce your inheritance for your family should you die or move into long term care. Therefore, it’s essential to discuss the decision with your loved ones and explore all of your options in order to make the best choice.