What is the maximum equity release LTV by age?

LTVs by age for a freehold house

LTVs by age for a leasehold flat

Calculating the maximum release from LTV

Once you have your LTV, you can multiply it by your property value to get an approximate maximum release amount available.

For example, if a lender offers a 40% LTV and your property is worth £300,000, the potential maximum release based on that LTV would be £120,000 (£300,000 * 40% = £120,000).

However, depending on where your property is located, there are some different points to consider.

LTV's in England, Wales and Scotland are broadly similar; however, you will see differences based on minimum/maximum property values and maximum release limits.

Properties in Northern Ireland have entirely different LTV's. You can see the LTV's for Northern Ireland later in this guide.

Properties in England

Properties in England have the most relaxed lending limits for equity release.

Many lenders are happy to lend up to £1 million, and some have even higher maximum release limits.

If your property is particularly high in value, you may see caps from some lenders on both the property value and the maximum release. Our equity release calculator takes these limits into consideration when calculating your maximum release.

Properties in Wales

You are likely to see slightly lower equity release lending limits in Wales compared to England.

It's not normally a problem unless your property is worth over £1 million, or you wish to release more than £500,000.

If you live in a particularly rural part of Wales, you might also see limits in lender options available.

Properties in Scotland

You are likely to see slightly lower equity release lending limits in Scotland compared to England.

It's not normally a problem unless your property is worth over £1 million, or you wish to release more than £500,000.

Lenders will also consider where in Scotland your property is located. If you are in mainland Scotland it is normally acceptable. However, if you live on an island or in very remote rural areas, you may find restrictions on the lending options available to you.

Properties in Northern Ireland

There are currently only two equity release lenders that offer plans in Northern Ireland.

Therefore, the LTV's are different if you live in Northern Ireland.

Please see the tables below for equity release LTVs in Northern Ireland.

LTVs by age for a house in Northern Ireland

What can affect the maximum equity release percentage?

The youngest homeowner's age significantly impacts the maximum percentage you can release; however, this is not the only factor.

Medically underwritten equity release plans

A medically enhanced equity release plan can allow you access to larger release amounts and lower interest rates.

With a medically underwritten lifetime mortgage, the lender will take into consideration your health and lifestyle. The lender asks a set of simple questions and will consider how your answers could impact on your life expectancy.

The lender considers the impact that your answers could have on your life expectancy.

If the lender believes you will live shorter than average, they will anticipate being repaid sooner, and treat you as if you were older.

As you can see in the grid above, the impact on the maximum amount available for medically enhanced plans can be substantial.

The younger you are, the more significant the impact could be!

The exact enhancement will depend on the number and severity of the conditions and lifestyle factors. Our calculator takes into consideration the maximum enhancements available.

To see how your conditions impact your medical enhancement, request your Key Facts Illustration.

Lender fees

With some equity release plans, you may incur an arrangement fee with the lender.

You are not required to pay the arrangement fee up front. Most lenders allow you to either deduct the arrangement fee from the loan amount or add it.

If you are trying to obtain the maximum amount available, I would suggest adding any arrangement fee to the loan amount.

Equity release plans with cashback

Some equity release plans also include cashback. Cashback can be great as it is in addition to the loan amount, and it does not attract any interest.

The cashback you receive can be used for anything you wish. However, it can be a great way to help pay for any setup fees associated with your plan.

Some lenders offer you a fixed sum regardless of your release amount. For example, some Pure Retirement lifetime mortgages provide £895 cashback on completion.

However, some lenders provide you with a percentage of the amount released. For example, 2% or even 5% extra.

The grid above does not include any cashback that you may be able to receive, but our calculator will show you plans, including cashback!

Joint vs Single

We've already explored how applying jointly can reduce the maximum equity release. You might be considering applying solely to avoid the reduction in the maximum loan.

The majority of lenders require that if an applicant is married, the equity release application be made in joint names.

But there are times when you may wish to apply in one name only, including:

• Where the property is already owned in one name;
• Where the spouse's primary residence is a different property;
• Where the youngest applicant is below the age of 55 (the minimum age for equity release plans);
• When one spouse is older, you may apply in one name to obtain more money or a lower interest rate.