Equity release explained
As interest rates fall and living costs rise, accessing the capital tied up in your home could provide a financial lifeline. According to research by Fairer Finance, 51% of UK households aged 60-plus are expected to require housing wealth to support their spending needs in later life and retirement*.
For many people, their home is often their most valuable asset – especially if they have lived in a property for a long time. In fact, it can often exceed the value of any pensions or savings. It’s estimated that housing wealth accounts for 40% of total wealth across all UK households*. Unless you’re ready to sell up and downsize, unlocking this wealth can be difficult.
Stay in your home for longer
Equity release enables people to take cash out of their home without having to move. In the first quarter of 2025, £665 million worth of housing equity was accessed by customers, according to figures from the Equity Release Council. The average amount borrowed by customers who opted for a lump sum product was around £127,000.
Depending on the lender and product, equity release is normally available to people aged 55 and over. There are two types of equity release (link to blog #2?): a lifetime mortgage, which is the most popular, or a home reversion plan.
The amount available to borrow depends on things like your age, health and the value of your property. The funds can be drawn down either as a tax-free lump sum or in smaller regular payments when required.
To qualify for equity release, your property must be in the UK and your main residence. Your home also needs to be in reasonable condition and over a certain value.
Understand the pros and cons
Equity release can have financial and legal ramifications (link to blog #4?) not just for you but also your family. It’s therefore important to explore the pros and cons before signing on the dotted line. Benefit entitlements, care costs and inheritance sums can all be impacted.
The specialist residential property team at Attwaters Solicitors can support you through the equity release process, enabling you to access funds as quickly as possible. We will work closely with your independent financial adviser or equity release broker to help you understand the proposed type of equity release product and how it may impact your estate and family. Contact us today to find out more.
* Fairer Finance and Equity Release Council, May 2025
