Can I get equity release if I’m over 75?

In short: Yes, you can generally access equity release if you’re over 75, but lenders may have stricter criteria. It’s crucial to compare offers and understand the long-term financial implications, as this involves borrowing against your home’s value. Your property may be at risk if repayments are not made.

Reaching retirement and considering your financial options is a significant life stage. Many retirees explore equity release, a way to unlock the cash tied up in their property without selling. A common question is whether age impacts eligibility, specifically: Can I get equity release if I’m over 75?

Equity Release and Age: Understanding the Landscape

While there’s no upper age limit set in stone by the government for equity release, lenders have their own criteria. These often involve a minimum age (usually 55) but may include upper age limits or stricter conditions for those over 75. This doesn’t mean it’s impossible; it simply means you’ll likely encounter a more selective application process.

Lenders assess various factors including your health, property value, and the amount you wish to borrow. The older you are, the more risk a lender might perceive, leading them to potentially offer less favourable terms or decline your application altogether.

Factors Affecting Your Eligibility Over 75

• Health: Lenders often require a health assessment to gauge your life expectancy. This is because the longer you live, the longer the loan will potentially be outstanding.
• Property Value: The value of your property needs to be sufficient to cover the loan amount and associated fees. A professional valuation will be required.
• Loan-to-Value (LTV): Lenders may offer a lower LTV (the percentage of your property’s value they’ll lend) if you’re over 75, meaning you might receive less cash.
• Credit History: A good credit history significantly improves your chances of approval. Get your free credit search here. It’s free for 30 days and costs £14.99 per month thereafter if you don’t cancel it. You can cancel at anytime. (Ad)

The Equity Release Application Process

The application process is usually similar regardless of age, but expect more thorough checks when over 75. This typically involves:

• Initial Consultation: Discussing your needs and financial situation with an equity release advisor.
• Property Valuation: A surveyor will assess your property’s worth.
• Financial Assessment: Reviewing your income, outgoings, and overall financial health.
• Health Assessment: This may involve providing medical information or undergoing a health check.
• Legal and Administrative Processes: Signing legal documents and completing the necessary paperwork.

Benefits and Risks of Equity Release Over 75

Equity release offers potential advantages, but it’s essential to weigh them against the inherent risks:

Potential Benefits

• Access to capital: Unlocking funds tied up in your property to support your retirement.
• Debt-free living: Potentially using the funds to clear existing debts, reducing financial stress.
• Home improvements: Making necessary home modifications to improve accessibility and comfort.
• Financial security: Providing additional financial security for yourself and your loved ones.

Potential Risks

• Reduced inheritance: The amount left for your heirs will be smaller as the equity release loan is repaid from the property value upon sale or death.
• Interest accumulation: Interest typically rolls up, increasing the amount you owe over time. This can significantly impact the inheritance or amount left for beneficiaries.
• Loss of home ownership: In extreme cases of non-payment, you may risk losing your home. Your property may be at risk if repayments are not made. Failure to meet repayments could lead to legal action, repossession, increased interest rates and additional charges.
• High fees: Equity release schemes involve various fees, potentially impacting the amount of money you actually receive.

Finding the Right Equity Release Plan

Thorough research and professional advice are crucial when considering equity release, especially over 75. Speak to an independent financial advisor (IFA) who can assess your individual circumstances and guide you towards suitable options. Compare various plans from different lenders to ensure you’re getting the most competitive terms.

The MoneyHelper website provides valuable, impartial information on equity release and other financial matters. It is strongly recommended that you thoroughly research your options before making any decisions.

People also asked

Can I get equity release if I have health problems?

Lenders will assess your health, and pre-existing conditions may affect your eligibility or the terms offered. It’s essential to be upfront about any health concerns.

What happens to my equity release loan when I die?

The loan is typically repaid from the sale of your property after your death. This reduces the inheritance available to your beneficiaries.

Is equity release suitable for everyone over 75?

No. Equity release involves significant financial risks, and suitability depends on individual circumstances, financial goals, and health. Seek professional advice before proceeding.

What are the typical fees involved in equity release?

Expect arrangement fees, valuation fees, and potentially other charges. These fees can vary between lenders and plans, impacting the net amount you receive.

How long does the equity release application process take?

The time it takes can vary, but expect several weeks, potentially longer, particularly if additional checks are required.

Are there any government regulations for equity release?

Yes, the Financial Conduct Authority (FCA) regulates equity release products in the UK to ensure standards are maintained and consumers are protected.