1. What Is Equity Release?

Equity release allows homeowners to access the value tied up in their property without having to move. It's a way to unlock tax-free cash from your home while continuing to live there.

2. How Does The Calculator Work?

The calculator uses the equity release formula:

Where:

• \( Property Value \) — Current market value of your property (GBP)
• \( Release Percentage \) — Percentage of property value available for release (%)
• \( Fees \) — Associated costs and fees (GBP)

Explanation: The equation calculates how much cash you can release from your property after deducting any applicable fees.

3. Importance Of Equity Release Calculation

Details: Accurate equity release calculation helps homeowners understand how much money they can access, plan for retirement, cover expenses, or improve their quality of life while remaining in their home.

4. Using The Calculator

Tips: Enter your property's current market value in GBP, the percentage of equity you wish to release (typically 20-60%), and any associated fees. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Who is eligible for equity release?
A: Typically, you must be at least 55 years old and own a property in the UK worth at least £70,000.

Q2: What are the different types of equity release?
A: The main types are lifetime mortgages (most common) and home reversion plans.

Q3: Are there risks with equity release?
A: Yes, it reduces your estate's value, may affect means-tested benefits, and accrues interest over time.

Q4: Can I move house with equity release?
A: Most plans are portable, meaning you can transfer the equity release to a new property if it meets the lender's criteria.

Q5: Should I get financial advice before equity release?
A: Yes, equity release is a significant financial decision. Always seek independent financial advice before proceeding.