How old is too old to take out equity release? Mark Gregory helps settle a family debate over a 90 year old’s eligibility to access the equity in their home
The Question
My grandmother is 91 and would like to take out equity release. We have told her she probably won’t be eligible so could you help us settle an argument, please?
She is hoping to release £100,000 (approximately) from her £650,000 home as she would like to gift some money to her newborn great grandchildren.
Mark’s Answer
Hello, I am delighted to settle an argument as I can confirm that your grandmother is eligible for equity release!
Equity Release is available from age 55 with a minimum property value of £70,000. If a mortgage is currently secured on the property, this would have to be repaid before or replaced during an application for equity release. I can confirm that there is no age limit with some providers, however some can cap at age 84 and 85.
Age plays a key role in how much someone can borrow through equity release. In fact, the older someone is, the higher the percentage of their property value they can typically access. At 91, your grandmother would likely qualify for one of the highest loan-to-value (LTV) amounts available on the market.
Conversely, the lower amount you borrow against the value of your home, the more competitive the interest rate will become. With a home worth £650,000 and a request to release £100,000, that works out at just over 15% of the property’s value and with the LTV being relatively low, this would attract a competitive interest rate around 6.08% MER with Aviva.
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Lifetime mortgage plans are commonly used for gifting purposes, as more people look to pass on wealth during their lifetime. These plans still include all the key safeguards you’d expect – like the right to remain in the home for life, no monthly repayments unless chosen, and the no negative equity guarantee (so her estate would never owe more than the home is worth).
That said, it’s great that you’re involved – because gifting via equity release should always be discussed with a qualified adviser. They’ll go over things like:
- The impact on inheritance
- How interest would build up over time
- Any effects on means-tested benefits (if applicable)
- Whether voluntary repayments might help preserve equity
So, to settle your family debate: yes, she is almost certainly eligible – and in fact, the numbers suggest her situation is perfectly viable for equity release. But, as always, advice is essential to make sure it’s the right decision for her circumstances.
Therefore, the benefit of getting advice from Equity Release Supermarket is twofold; firstly, we have access to the whole of the market, so all options, features, and benefits are available with no age restriction. Secondly, our advisers are expert, professional advisers who will help and guide your grandmother at a pace that suits her either over the telephone, face-to-face or video conferencing in her quest to gift capital to her great grandchildren.
You can connect with a fully qualified Equity Release Supermarket adviser here to explore all options together.
Meet our expert…
Mark Gregory, founder and CEO of Equity Release Supermarket, is here to answer your questions. Mark is an adviser himself with over 20 years equity release experience.
He launched Equity Release Supermarket 10 years ago and it has grown to become one of the UK’s leading equity release specialists.
Email kate.saines@emap.com to ask Mark a question
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