Equity release lets homeowners aged 55 and over release tax-free cash from the value of their home. The amount you can release is based on your age and how much your home is worth. Depending on the equity release product you choose, you can claim your money as one big lump sum or as a series of smaller lump sums.
You can use the money you release however you like.
• Help your children with money difficulties or to buy their own home
• Live out your dreams of travelling the world
• Pay off your loans
• Make vital improvements to your home as you grow older
• Have some extra money to help you enjoy your retirement
Your chosen lender can also give you the option to protect an inheritance for your family from the value of your home. The amount you protect won't be used when calculating how much you can borrow. You can discuss this with your financial advisor.
Some equity release providers also offer a no negative equity guarantee. This means that the money you'll eventually need to pay back will never be more than the total value of your home. You won't need to pay the money you have released back until the last surviving borrower passes away or moves out of the home into long-term care. The loan is usually paid off from the sale of your home.
Lifetime mortgage: The most popular type of equity release. A lifetime mortgage lets you take a loan secured against your home whilst still owning it.
Home reversion scheme: You sell all or part of your property for less than the market value. You stay in your home, but as a tenant.
At Legal & General, we only offer lifetime mortgages.
How much could you release?
Interested in equity release? Find out how much you could release with our quick and easy to use equity release calculator.
Is equity release safe?
Equity release is a highly regulated and popular way to release your money. In our article, we address some of the myths around equity release to help you feel confident about your decision.
“My son has always wanted to get on the property ladder but has never been in a position to save up enough for a deposit. I spoke to a couple of financial advisers and the name that kept coming up all the time was Legal & General. The lifetime mortgage has ensured that my son, now feels secure. That is worth more than any money. I’m very happy I was able to do that for him.”
- Evadne, Nottingham
Your financial adviser will help you select the right amount to release based on your age and the value of your home. Your advisor will also help you choose a lender that meets your financial circumstances. You can reduce the amount you owe by paying off some or all of the interest on the loan, if the product you choose allows this.
These examples have been calculated using our current rates (as of August 2021).
Example 1: Mark is aged 66 and his home is worth £450,000. He'd like to release equity to live out his dream of travelling around America. He also wants to protect 30% of his home's value as an inheritance for his family. Based on his circumstances, Mark could be able to release up to £122,850 and secure £52,650 under inheritance protection. If he didn't choose to pay off any interest, Mark would owe £141,277 after 5 years, £159,705 after 10 years, and £196,560 after 20 years with a 3% interest rate.
Example 2: Salma is aged 75 and her home is worth £450,000. She'd like to use equity release to make some home improvements. Based on Salma's personal circumstances, she could release up to £218,250. If she didn't choose to pay off any interest, Salma would owe £250,987 after 5 years, £283,725 after 10 years, and £349,200 after 20 years with a 3% interest rate.
You can find out how much you could release using our Equity Release Calculator. For more information on how interest is calculated on a lifetime mortgage, visit our Lifetime Mortgage Interest Rates page.