Mortgages.scot

I have previously provided a more detailed look at equity release products, you can find it here. I do get a few queries from visitors of the site asking how much they could realistically release. It's not so easy to get figures without going through a sales process which understandably many older visitors don't want to do.

Determing how much can be released

There is information out there that offers some insight. The issue is that it all depends on personal circumstances. For example, you can get more out of a property if you have any of the following apply or you have had a history of these.

• Strokes
• Cancer
• Diabetes
• Very low or very high BMI

In other words, if there is a chance your survival chance is reduced through a current illness or a pre-existing medical condition you are likely to get more money. Morbid I know, but that is how it works. Equity release providers are trying to predict how long they will have to wait to get any return as most equity releases are provided through lifetime mortgages that require no repayment until you die.

Unfortunately, if you are a typical, healthy person with no notable health issues you will get less.

How much could be released?

The following chart gives some information on what you could expect based on average house prices over the last 10 years for someone aged 74 and in generally good health, a typical 74-year-old.

Apologies to the creator of this table. I can't recall where it came from so I am unable to credit it. If you see this post please get in touch and I will add a credit.

As you can see, someone at age 74 based on the average house price in Scotland of £180k could release £72k.

The older you are the more you will be able to release. It is suggested that broadly you can expect between 20-65% of the property value.

I would however suggest that anyone under 65 who is healthy will be at the bottom of that potential and should seriously consider the value in equity releasing. To get right up to the higher end at 65% you will need to be 70+ and potentially have health concerns if you are looking to maximise the amount you could receive.

Releasing equity requires a lot of thought. Be sure to check out my guide mentioned at the start but always consult a professional.