How much you can release depends mainly on your age and your home’s value, plus your health. As a rough guide, lenders release around 20%–30% of the value at 55, rising to roughly 50%–55% by your late seventies or eighties. On a £400,000 home that is broadly £80,000 to £220,000.
The short answer
- The amount you can release is driven mainly by your age and your home’s value.
- Maximums range from roughly 20%–30% at 55 to around 50%–55% by your late seventies or eighties.
- Health, property type, joint applications and any existing mortgage all affect the final figure.
The amount you can unlock from your home is decided by a fairly simple formula, then fine-tuned for your circumstances. The two biggest factors are your age and the value of your property. Lenders express the maximum as a loan-to-value percentage: the older you are, the higher the percentage they will offer, because the plan is expected to run for a shorter time before it is repaid. Our full guide to how much equity you can release works through the detail; here is the shape of it.
As a broad rule of thumb, a 55-year-old might release around 20%–30% of their home’s value, while someone in their late seventies or eighties could release roughly 50%–55%. The table below shows how that plays out on homes of different values. Treat these as illustrative maximums, not quotes, every lender has its own criteria.
Approximate maximum you could release, by age (illustrative)
| Age | Rough max loan-to-value | £250,000 home | £400,000 home |
|---|---|---|---|
| 55 | 20%–30% | £50,000–£75,000 | £80,000–£120,000 |
| 65 | 30%–40% | £75,000–£100,000 | £120,000–£160,000 |
| 70 | 35%–45% | £87,500–£112,500 | £140,000–£180,000 |
| 80+ | 50%–55% | £125,000–£137,500 | £200,000–£220,000 |
These figures assume a lifetime mortgage. A home reversion plan works differently, you sell a share of the property, and typically yields less than the market value of the share, because the provider waits until the home is sold to realise its money. Because home reversion involves giving up part of your ownership, most people choose a lifetime mortgage instead, but for some older homeowners reversion can release a competitive amount and lock in a fixed share of the estate for beneficiaries.
To make the age effect concrete, picture two homeowners with identical £300,000 houses. A 58-year-old might be offered around a quarter of the value, roughly £75,000. A 78-year-old, with a much shorter expected term, could be offered around half, some £150,000. Same house, very different figures, purely because of age. This is also why releasing as late as your needs allow tends to give you both a larger maximum and less time for interest to compound.
What else affects the figure
- Your health and lifestyle. Enhanced plans can release more, or offer a better rate, for qualifying medical or lifestyle factors.
- Property type and construction. Standard brick-and-tile homes are straightforward; non-standard construction, flats or ex-local-authority properties may reduce what is available.
- Joint applications. On a joint plan, the age of the younger applicant is used, which lowers the maximum compared with a single older applicant.
- Any existing mortgage. An outstanding mortgage must usually be cleared from the release first, reducing the cash you actually receive.
You rarely need the maximum
Just because a lender will release, say, £150,000 does not mean you should take it all. Because interest compounds, borrowing more than you need is expensive. A drawdown plan lets you take an initial sum and reserve the rest, so you only pay interest on money you have actually used.
How the money is paid
You can usually choose between a single lump sum and a drawdown facility. With drawdown, you take an initial amount and keep the balance in reserve to draw on later, interest-free until withdrawn. For most people this is the more cost-effective route, and it is worth reading alongside our answer on how much equity release costs to see how the interest builds over time.
It is also worth remembering that the maximum on offer is not a target. Every extra pound you release starts compounding immediately, so borrowing £100,000 when £40,000 would meet your needs can cost your estate dearly over twenty or thirty years. A good adviser starts from what you actually need, a specific home improvement, clearing a mortgage, or a modest income top-up, and works back from there, rather than simply confirming the largest cheque a lender will write.
The value used is the lender’s own valuation, not your estimate or an old purchase price, so the figure can differ from what you expect. A surveyor assesses the property, and factors such as condition, location and any non-standard features feed into it. If your home has risen sharply in value, that works in your favour; if it needs significant repair, the offer may be trimmed. This is one reason a whole-of-market adviser is useful, different lenders value and lend against the same property in slightly different ways.
The only way to know your own figure is a personalised illustration, which a specialist can produce once they know your age, health and property. Vetted Wealth will match you, free of charge, with an independently vetted, FCA-regulated adviser, and you can also read whether equity release is a good idea before you start. This is information, not personal advice; the value of your home and the amount available can change.
In summary
- The amount you can release is driven mainly by your age and your home’s value.
- Maximums range from roughly 20%–30% at 55 to around 50%–55% by your late seventies or eighties.
- Health, property type, joint applications and any existing mortgage all affect the final figure.
- Borrowing only what you need, often via a drawdown plan, keeps the long-term cost down.
Sources and further reading
- Equity release MoneyHelper
- Standards and safeguards Equity Release Council
- Check the Financial Services Register Financial Conduct Authority
Read the full guide
For the complete picture, see our in-depth guide: How Much Equity Can I Release?.
Speak to a vetted equity release specialist
This is free information, not personal advice. When you’re ready, we’ll match you with an independently vetted, FCA-regulated specialist, free, and with no obligation.
