If you’re under 55, it is unlikely that you will be able to use any formal forms of equity release for under 55. Lifetime mortgage schemes and home reversion plans require that the youngest applicant is over 55, as well as being the property owner and being of sound mind (see enhanced lifetime mortgages and ill-health schemes).

This is because they involve selling part of the property – or the whole of it in some cases – to raise funds. The interest accrues over time and lenders want to make sure that they can recuperate the money paid out with any eventual sale of the property. They are also concerned that younger people might not be able to cope with the financial impact of such schemes and so may struggle to sell their home when they die, leaving their loved ones with a debt burden.

Unlocking Home Equity: Exploring Options for Homeowners Under 55

There are, however, alternatives. For example, many equity release providers will offer loans to homeowners based on the value of their homes. This involves using a valuation to work out the amount of value you have in your home, including any existing mortgage or charges. You can check how much your property might be worth by completing a simple online calculator.

It is possible for younger homeowners to gain access to the equity in their property through these types of loans or through other products such as remortgaging. If you’re interested in finding out more about this, we recommend you get free independent advice.